Japan’s power firm and LNG trader Jera and Indonesia’s state-owned energy firm Pertamina plan to invest in LNG infrastructure as part of a new deal.
The two firms signed a memorandum of understanding to collaborate on business opportunity discussion and potential collaboration, according to a statement by Jera.
Indonesia, with its healthy economic growth and steadily increasing electrification rate, is expected to see continued increases in its demand for electricity, Jera said.
At the same time, because Indonesia is highly reliant on coal-fired thermal power generation, there is concern that its growing demand for electricity will lead to higher emissions of greenhouse gases, it said.
Jera said the MoU sets out information sharing and discussions to enhance the value of the fuel value chain and to create business opportunities for infrastructure investment in LNG and hydrogen/ammonia.
The collaboration will include LNG and hydrogen/ammonia transportation and LNG receiving terminal operation and maintenance, as well as capacity building through benchmarking, training and/or exchange to improve the operational efficiency of LNG handling.
In addition, the two firms will also consider the development of new businesses related to carbon capture utilization and storage (CCUS).
Jera and Pertamina will work to solve the short- to medium-term issue of increasing energy demand while also steadily promoting the medium- to long-term issue of energy decarbonization through collaboration on LNG and hydrogen/ammonia value chains in Indonesia, the statement said.
Jera’s unit in Indonesia launched its operations in August this year.
According to its website, Jera handles about 40 million tons of LNG annually, among the largest transaction volumes in the world.