Jera, Pertamina ink LNG pact

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.

- Advertisements -

Most Popular

QatarEnergy, ExxonMobil update on Golden Pass LNG work

Energy giants QatarEnergy and ExxonMobil released the latest construction update for their Golden Pass LNG export terminal on the...

LNG freight rates, European prices climb

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet and European prices increased this week compared...

Samsung Heavy to sue Russia’s Zvezda over LNG carrier contract termination

South Korean shipbuilding giant Samsung Heavy Industries said it will sue Russian shipbuilder Zvezda after the latter decided to...

More News Like This

Japan’s Jera to sell part of its Freeport LNG stake to Japex

Japan's Jera has agreed to sell a part of its stake in US LNG terminal operator Freeport LNG to...

Australia’s Woodside gets $1.45 billion loan for Scarborough

Australian LNG player Woodside has secured a loan worth $1.45 billion from the state-owned Japan Bank for International Cooperation...

MOL and Jera seal another charter deal for newbuild LNG carrier

Japan’s shipping giant MOL has signed a new long-term deal to charter one newbuild liquefied natural gas carrier to...

Japan’s Jera plans to invest up to $13 billion in LNG

Japan's power firm and LNG player, Jera, plans to invest 1-2 trillion yen ($6.47-$12.96 billion) in its liquefied natural...