Bosowa Energy, BK LNG Solution Collaborate on Energy Infrastructures in Indonesia

Bosowa Energy Group and BK LNG Solution (BKLS) are modernizing Indonesia’s energy infrastructure with cleaner-burning fuels, primarily LNG, and advancing the country’s transition toward a clean-energy landscape.

Under a signed memorandum of understanding, the partners will focus on key areas:

• LNG supply chain integration
• Building floating storage units
• Natural gas-fired power generation
• Downstream energy applications
• Small-scale LNG distribution with ISO tank containers

"As a specialist in flexible LNG solutions with extensive experience across the region, we are confident in our ability to deliver reliable and efficient natural gas solutions tailored to Indonesia's unique needs, which we believe are essential for a resilient energy transition,” said Henry Kim, President of BKLS. “This partnership not only initiates resource synergy but also demonstrates our shared commitment to Indonesia's clean energy goals."

MoU signing ceremony in Jakarta; image credit: Business Wire

MoU Breakdown

Bosowa Energy and BKLS will transition current diesel-powered plants on remote Indonesian islands to LNG-fired operation, minimizing greenhouse gas emissions and enhancing energy stability in under-resourced areas. The partners will also deploy modular LNG regasification units within under-development microgrid systems. The overall conversion to LNG-powered microgrids will allow Indonesia to transition from diesel to natural gas, with the first pilot projects expected to launch in the latter half of 2025.

"This collaboration with BK LNG Solution represents a key milestone for Bosowa Energasindo as we strengthen our commitment to Indonesia's energy transformation,” said Junizwan, CEO of Bosowa Energasindo. “By combining our domestic operational capabilities with BKLS's international LNG expertise, we are building a foundation for a more agile, efficient, and sustainable energy future."

Following the start of pilot projects in eastern Indonesia, the collaboration will develop future plans to extend LNG conversion across the country.

LNG in Indonesia

In early September 2024, PLN Indonesia Power’s (PLNIP) 780-MW Tambak Lorok combined-cycle power plant began commercial operation in Tanjung Mas, Central Java. Tambak Lorok Block 3 is equipped with GE Vernova’s HA combined-cycle equipment and will deliver the electricity required to power approximately 5 million homes in Indonesia.

Specifically, the plant uses GE Vernova’s 9HA.02 gas turbine, a STF-D650 steam turbine, the Once Through heat recovery steam generator, and balance-of-plant equipment. GE Vernova also signed a 15-year service agreement to manage project lifecycle, training, and maintenance, enhancing operational performance and plant reliability. Training will support knowledge transfer and the skills development of PLNIP’s operations team.

Using H-class technology, Tambak Lorok produces up to 60% less emissions than similarly sized plants powered by diesel, coal, and other fossil fuels. The H-class gas turbine portfolio can burn up to 50% by volume of hydrogen when blended with natural gas, with future potential for 100%.

Geothermal Power

In late October 2024, Star Energy Geothermal Darajat II (SEG) awarded Mitsubishi Power a retrofit contract for Unit 3 at its Darajat Geothermal Power Plant in Indonesia. The retrofit, scheduled to conclude in fall 2026, will upgrade the plant’s steam turbine and associated equipment. Upon completion, the plant’s power output will increase from 121 MW to 129 MW. SEG’s geothermal plant is sited in Garut, West Java, approximately 200 km southeast of Indonesia’s capital—Jakarta.