Indonesia’s Pertamina inks LNG supply deal with Amman Mineral

Indonesia’s state-owned energy firm Pertamina has signed a heads of agreement to supply liquefied natural gas (LNG) to a unit of compatriot mining firm Amman Mineral.

According to a statement by Amman Mineral, the LNG supplies would go to Amman Mineral Nusa Tenggara’s upcoming combined cycle power plant and its copper smelter.

Amman Mineral did not provide any further information regarding the agreement.

AMNT’s president Rachmat Makkasau said in the statement that the strategic partnership with Pertamina is a “critical step” to help AMNT lower its carbon emission further.

“As one of the largest copper and gold producers in the world, AMNT is committed to conduct its operations with sustainable mining practices. We are currently constructing a 450 megawatt CCPP to support our expanding operations at the Batu Hijau site, which will run on cleaner energy source, gas,” he said.

The capacity of AMNT’s CCPP will be almost three times larger than the existing power plant, to support the operations of copper smelter and precious metal refinery facilities, expanded processing plant, and Phase 8 mining.

Amman Mineral said it expects to launch the power plant in 2024.

Pertamina’s shipping unit recently joined forces with natural gas trader Davenergy Mulia Perkasa and Malaysia’s Bumi Armada to develop a floating LNG production project based on the resources from the Madura gas field and its surrounding fields.

Pertamina already operates the Bontang LNG terminal in Indonesia and it recently also purchased a 20 percent stake from Shell in Indonesia’s Masela PSC, which includes the planned Abadi LNG project.

The company’s unit Perusahaan Gas Negara also operates the FSRU-based LNG import facility offshore Lampung, that features Hoegh LNG’s Lampung FSRU.

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