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PLN Meets Future Gas Needs with New Contracts from PGN, Pertamina

State electricity company PT Perusahaan Listrik Negara says it will have enough gas to fire its existing and new gas-fired generation plants in most of the country by September next year.

PLN president director Dahlan Iskan said on Wednesday the company had secured a combined gas supply of more than 780 billion British thermal units per day (bbtud) from fellow state-owned companies PT Perusahaan Gas Negara and PT Pertamina. The gas will be supplied from September 2011, he said.

“The gas supply for [plants in] Jakarta, Medan, East Java and Bali has been secured from PGN and Pertamina,” Dahlan said. “But for Central Java, we are still negotiating with Petronas.”

PLN’s two gas-fired plants in the Jakarta area — at Bekasi and Muara Karang in North Jakarta — will receive 400 bbtud of liquefied natural gas from a floating storage facility to be built by PGN and Pertamina off the coast of West Java.

PGN’s North Sumatra LNG terminal will supply 160 bbtud to PLN’s plant in Medan, while Pertamina’s East Java LNG terminal will supply 160 bbtud to the electricity company’s East Java plants. In Bali, Pertamina will supply PLN with 60 bbtud.

The contracts would be long term and the price open to negotiation, Dahlan said.

PLN has been reducing the amount of oil and diesel it uses to generate power, replacing them with cheaper coal and natural gas.

This year, PLN estimates that 19 percent of its electricity will be generated from oil, 6 percent less than last year. About 44 percent will be from coal, up 5 percent, and 26 percent from gas, up 1 percent. Seven percent will be from hydropower, 2 percent from geothermal and 1 percent from biofuels.

In 2011, PLN expects coal to generate 54 percent of its power, gas 25 percent and oil 12 percent.

Nur Pamudji, PLN’s primary energy director, said that although gas usage would increase next year, because of the large amount of new capacity coming on stream as part of the government’s 10,000 megawatt “fast-track” program, the percentage of electricity generated from gas would actually fall slightly.

The total savings from using more gas had yet to be determined, he said. But if gas was secured for PLN’s plant in Semarang, Central Java, that would save the company about Rp 15 trillion ($1.62 billion) a year, he said.

Budi Indianto, deputy chief of upstream oil and gas regulator BPMigas, said earlier that the LNG terminals would receive gas from both domestic and interna tional sources.

http://thejakartaglobe.com/business/pln-meets-future-gas-needs-with-new-contracts-from-pgn-pertamina/353891

[Last update: 2010-01-21 03:31:43]

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