Keppel, Pavilion and Perusahaan Listrik Negara contract

Keppel Offshore & Marine Limited (Keppel O&M) has entered a Heads of Agreement (HOA) with Pavilion Energy and Indonesia state-owned PT Perusahaan Listrik Negara (PLN) to explore opportunities in the development of small-scale LNG distribution in West Indonesia.

The HOA intends to leverage on the combined expertise of the companies in the small-scale LNG value chain to distribute LNG in an economic manner to remote areas in West Indonesia. LNG can be delivered to floating and onshore LNG terminals using small LNG carriers, where it is regasified and used to generate electricity at PLN’s power plants.

CEO of Keppel O&M, Mr Chris Ong said: “Keppel has almost 30 years of experience in the LNG space. With a comprehensive suite of solutions for every stage of the gas value chain, including the world’s first Floating Liquefaction Vessel (FLNGV) conversion and the world’s first Floating Storage and Regasification Unit (FSRU) conversion, we are able to provide cost effective, end-to-end solutions for our customers.”

The HOA follows the discussion between the Indonesia and Singapore governments regarding bilateral energy cooperation during the Singapore-Indonesia Leaders’ Retreat held in Semarang last year. A joint feasibility study was subsequently carried out, which demonstrated the cost savings and mutual benefits that can arise from collaboration in the small-scale LNG value chain.

For more information visit www.keppelom.com

19th Sept 2017