Wartsila, PLN to develop LNG power generation in Indonesia

Finnish engine manufacturer Wärtsilä and Perusahan Listrik Negara, the state power company of Indonesia on Friday signed a deal to cooperate on the development of 500 megawatts of power generation solutions and related small scale LNG storage and regasification infrastructure in Indonesia.

This power generation is expected to be contracted and installed as several projects during the next two years, Wärtsilä said in a statement.

Wärtsilä noted in the statement, that another major aspect in this memorandum of understanding is the emphasis put on further developing local Indonesian capability in power projects execution, knowledge transfer and development of local skills,

“Thanks to a rapidly developing economy, the standard of living in Indonesia has significantly improved in recent years. Supporting further economic growth requires large investment in the development of infrastructure, particularly in power generation. An additional priority of the Indonesian government is to ensure equal availability of reliable power supply through the entire Indonesian archipelago.”

In order to reach these targets, an ambitious program of adding 35,000MW of power generation capacity to their system by 2019 was started in 2015.

The 500MW of power generation capacity covered in the agreement will help PLN in implementing this program, Wärtsilä added.