Indonesian company to import LNG from Australia and Papua New Guinea (PNG)

To overcome gas shortfall problems that have caused a significant increase in the company's operational costs, state electricity utility PT PLN plans to import liquefied natural gas (LNG) from Australia and Papua New Guinea. 

This year, the company would struggle to acquire more gas to reduce costs in producing power amid soaring global oil prices, said PLN president director Dahlan Iskan in Jakarta on Friday.

"We need around 1,800 million standard cubic feet per day [mmscfd] of gas per year, but we only receive 800 mmscfd in supply from the government. If we obtain full gas supply, we can save up to Rp 60 trillion a year (US$6.98 billion)," he told reporters.

Due to gas shortfalls, PLN could currently only produce 9,800 megawatts of electricity from its gas-fired power plants, 11 percent below the maximum capacity of 11,000 megawatts.

PLN had also explored the possibility of importing LNG from Iran and Kuwait. The House of Representatives commission VII overseeing energy demanded that the company use more gas to boost efficiency.

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