Govt to Finalize LNG Purchase from Qatar

  • Font:
  • Ukuran Font: - +
  • TEMPO.CO, Jakarta - The Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said that President Joko Widodo expects to finalize liquefied natural gas (LNG) purchase from Qatar. He said that the government is interested to purchase LNG from Qatar due to its low price. “Indonesia can get a price of USD7.16 per MMBtu.”

    Luhut added that if the cooperation materializes, Qatari gas will be distributed to the western parts of Indonesia. President Jokowi is hopeful that the plan can be realized in the first quarter of 2018, according to him.

    President Joko Widodo last week received a state visit by Qatari Emir Sheikh Tamim bin Hamad Al Thani. They agreed to step up cooperation in the fields of infrastructure and tourism. At present, Qatar’s investment in Indonesia includes a gas power plant project in North Sumatra.

    The Energy and Mineral Resources Minister Ignasius Jonan said that in a cooperation agreement on North Sumatra gas power plant, the government allows Qatar to find supply from abroad. However, the government does not expect that the plant gate price to hit over 14 percent of Indonesian crude price (ICP). “If the domestic plant gate price is at the same price or cheaper, we will take it,” Jonan said.

    Jonan added that the government has no issues with importing gas if the price is cheaper than domestic gas. “In order to push for a more competitive industrialization,” he said.

    Former energy ministry Sudirman Said earlier said that the infrastructure agreement between PT Saran Multi Infrastructure and Qatar Investment Authority is worth US$1 billion.

    Meanwhile, in the North Sumatra gas power plant (2 x 250 mW), state-owned electricity company PLN is working closely with Qatari-based Nebras. The investment is worth US$350 million. The two companies formed a joint venture in December 2016.