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Small scale LNG development in Asia

Published by , Senior Editor
LNG Industry,

Indonesia’s PT Pertamina Gas (Pertagas) has announced that it is studying the possibility (in partnership with PT Pelayaran) to use liquefied natural gas (LNG) as a marine fuel. In late 2013, the company carried out a pilot project to promote the use of LNG as a transport fuel within the booming Indonesian mining sector.

Pertamina appears to be exploring full small scale value chain possibilities. In a recent interview, Vice President Gas and Power Commercialization for PT Pertamina, Pak Taufik Afianto said: “Pertamina will exercise any possible scheme that could be materialised [to unlock potential gas markets in Indonesia]. In order to anticipate long term gas market requirements, Pertamina also introduces and uses LNG based gases. In regard to this, Pertamina has committed to intensifying the building [and] establishing of gas infrastructure throughout Indonesia.”

Rise of LNG in Asia

Many emerging markets are searching for alternatives to reduce the dependency and use of dirtier fuels, such as coal and diesel.  The usage of natural gas has become more viable, and many are looking to develop smaller indigenous fields to meet energy demands. This current trend has contributed to the rise in demand for LNG in Asia.

Gas-fired plants are already being considered for baseload top-ups in countries such as the Philippines and Bangladesh. Earlier this year, the Philippines’ First Gen Corp. announced plans to build an LNG import terminal to secure supply to power the numerous gas-fired power plants it is planning to construct, to avert an expected power shortage on its most populous island, Luzon. Bigger projects will be required with the expected depletion of the indigenous Malampaya field by 2024.

In response to the increasing dialogue around regional small-mid scale LNG developments, industry thought-leaders and stakeholders, from both the public and private sector, will gather at the 3rd annual Asia Pacific Small & Mid-Scale LNG (APAC LNG) Forum in May, to explore global and regional drivers for small-mid scale proliferation. The Forum will address the commercial and technical challenges that stand between the development of the regional small-mid scale LNG markets.

The Forum is supported by Wärtsilä, GTT (Gaztransport & Technigaz), Anthony Veder Group N.V., GE Oil & Gas, King & Spalding and Linde AG.

Adapted from press release by

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