LNG Alliance unit plans Indonesian energy hub

A unit of Singapore-based LNG Alliance plans to build a green ammonia production facility and a liquefied natural gas import terminal in Palu, Indonesia.

In that regard, LNG Alliance’s Aslan Energy Capital and Indonesia’s PT Agri Maritim Sulteng, a Central Sulawesi government-owned company that carries out provincial development, have entered into a cooperation agreement, according to a statement released this week.

Under the deal, Aslan Energy Capital said it would invest, develop and execute a multi-faceted green energy hub project in Palu through the construction of a solar farm and a “first of its kind” green ammonia production facility in Indonesia with the active support and engagement of the government of Central Sulawesi.

The joint development and cooperation agreement also includes the establishment of a “carbon- neutral” LNG import terminal within the Palu SEZ, adjacent to the Port of Pantaloan, that would enable “clean power generation” for the mining and smelter industry in Central Sulawesi, it said.

Solar power and ammonia production

The Palu hub would deliver up to 400 MW of solar power production, according to the statement.

Moreover, it will consist of three energy mix components. Under the first stage, Aslan Energy Capital plans to launch a 100 MW solar farm, which will primarily supply industries in the Palu SEZ, by the fourth quarter of 2023.

The firm plans to implement additional solar capacity over the next four years to power the electrolyzers of the 180 tonnes/day green ammonia production facility at Palu SEZ.

Palu onshore LNG import facility

The onshore LNG import terminal at Palu would have an import capacity of 2 mtpa and would supply “carbon-neutral” LNG for the captive 1.2 GW combined cycle power plant, the statement said.

Aslan Energy Capital aims to develop the LNG marine facilities in partnership with the Port of Pantaloan, a commercial port in Central Sulawesi.

This would almost double the port’s cargo handling capacity, it said.

In addition, this LNG terminal would ensure sufficient power generation for the regions nickel smelter industries and provide LNG via virtual pipelines (ISO LNG containers and trucking) to reduce the carbon footprint of the mining industry, Aslan Energy Capital said.

Ammonia exports to Japan and South Korea

Muthu Chezhian, managing director of Aslan Energy Capital and LNG Alliance, said in the statement that once the domestic demand is met, the company plans to export the excess supply of ammonia to markets such as Japan and South Korea.

“Indonesia is our group’s key strategic hub in Asia Pacific. This project is the largest to date in our Indonesian portfolio alongside our two other large-scale blue hydrogen and LNG developments ongoing in Java,” he said.

“Feasibility studies have been completed and the engineering and permitting process is moving on an expedited track with support from the provincial authorities and the Governor’s office, with construction expected to begin in Q4 of 2022 for the 100 MW solar farm,” Chezhian said.

Several LNG developments

LNG Alliance said in 2020 it had opened a new office in India’s Chennai as part of its plans to invest in the country’s growing LNG sector.

It also revealed plans to build a large LNG import terminal in the southern Indian state of Karnataka for about $290 million.

Also, the firm is developing the Amigo LNG export project in Mexico which includes a 7 mtpa liquefaction facility.

Besides Mexico, India, Indonesia, the company is working on a development in Montenegro.

LNG Alliance joined forces with Montenegro’s state-owned power firm EPCG to look into building an LNG import terminal as well as two gas-fired power plants in the country.

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