SINGAPORE, Sept 7 (Reuters) - Pavilion Energy and Keppel Corp have signed a heads of agreement with Indonesian state electricity utility PT Perusahaan Listrik Negara (PLN) for small-scale liquefied natural gas (LNG) distribution to western Indonesia, the two Singapore companies said on Thursday.
Pavilion Gas and Keppel Offshore & Marine Ltd will work with PLN to distribute LNG to remote parts of west Indonesia, as well as generate electricity at PLN’s power plants, the companies said.
“Small-scale LNG enhances Singapore’s role as a regional hub for LNG storage and reload, breakbulk and distribution,” Seah Moon Ming, chief executive officer of Pavilion Energy and Pavilion Gas, said in a statement.
The agreement follows government discussions on energy cooperation last year and a subsequent feasibility study that demonstrated cost savings and mutual benefits from collaborating in small-scale LNG, Keppel said in a separate statement.
Reporting by Florence Tan; Editing by Richard Pullin