Pavilion Gas Pte Ltd, a subsidiary of Pavilion Energy, has signed a Heads of Agreement (HOA) with Indonesia state-owned PT Perusahaan Listrik Negara (PLN) (Persero) and Keppel Offshore & Marine Limited (Keppel) to collaborate on small-scale Liquefied Natural Gas (LNG) in West Indonesia. The signing of the agreement took place at the Singapore-Indonesia Leaders’ Retreat in Singapore.

The collaboration involves the distribution of LNG to remote islands and locations in West Indonesia. LNG will be delivered to floating and onshore LNG terminals using small LNG vessels, where it will be regasified and used to generate electricity at PLN’s power plants of between 25 megawatts (MW) to 100 MW in capacity.

Small-scale LNG allows LNG to be transported and distributed in smaller quantities to hard-to-reach locations where pipelines do not exist. It is a fitting solution for the Southeast Asian region, which is home to thousands of small and remote islands – of which many are inhabited and require power.

"Pavilion Energy has identified small-scale LNG supply and distribution as a key business area for the company, and has built up its capabilities in small-scale LNG supply chain and engineering to provide a reliable, efficient and cost-effective solution. We are pleased with this opportunity to collaborate with PLN to deliver small-scale LNG to remote locations in Indonesia for power generation, and to enhance energy cooperation between Indonesia and Singapore," said Mr Seah Moon Ming, CEO of Pavilion Energy and Pavilion Gas, “Small-scale LNG enhances Singapore’s role as a regional hub for LNG storage and reload, breakbulk and distribution."