Keppel O&M to explore LNG developments in Indonesia

It plans to distribute LNG using specialised carriers.

Keppel Offshore & Marine Limited (Keppel O&M) will look at developing small-scale Liquefied Natural Gas (LNG) distribution in Indonesia.

According to a press release, it entered a Heads of Agreement (HOA) with Pavilion Energy and Indonesian-owned Perusahaan Listrik Negara (PLN) to collaborate on the small-scale LNG value chain.

The HOA will combine the companies' capacities to distribute LNG economically to remote areas in West Indonesia.

According to Keppel, LNG can be delivered to both floating and onshore LNG terminals using special carriers. These are regasified and used to generate electricity at PLN's power plants.

Keppel O&M chief executive officer Chris Ong said, "With a comprehensive suite of solutions for every stage of the gas value chain, including the world's first Floating Liquefaction Vessel (FLNGV) conversion and the world's first Floating Storage and Regasification Unit (FSRU) conversion, we are able to provide cost effective, end-to-end solutions for our customers."

Keppel O&M does not expect the HOA to affect company performance for the year.