Indonesia’s small-scale LNG power plant conversion: a triple hit for PGN?

Indonesian gas is currently in a precarious position, where the government needs to find new domestic demand to absorb surplus gas coming into the market amidst expiring export contracts. According to the Institute for Energy Economics and Financial Analysis’ (IEEFA) new report, small-scale liquefied natural gas (ssLNG) has been re-proposed in Indonesia to create new market demand and to expand gas use in the power sector by replacing high-cost fuel oil. However, the economics of this gas conversion plan are problematic.