BP Indonesia asked to repair leakage in gas pipe

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has urged BP Indonesia to immediately repair the leakage in its gas pipeline in the Pegerungan gas field, Madura, East Java and also pay the cost for the repair works, Kompas daily reported on Saturday.

The minister said in Jakarta on Wednesday that Pertamina was expected to be able to provide fuel as the substitute of the gas for the 500-MW combined cycle Gresik power plant which at present still relied on BP Indonesia to provide its energy needs.

"The purchase of the (diesel) fuel from Pertamina is being negotiated. It is not certain yet whether PLN will wholly responsible for the payment of the fuel," he was quoted as saying by the daily.

BP is the main gas supplier of the Gresik power plant, the local office of the state owned gas distribution company PGN and urea and ZA fertilizer producer PT Petrokimia Gresik, significantly lowered its gas supply due to the leakage in the company?s collecting gas pipeline. The accident also affect a number of industrial users such as PT Surabaya Agung Indonesia, PT Chell Samsung and PT Miwon Indonesia which source their gas needs from PGN.

The leakage has caused the decline in the gas supply from BP?s Perungan gas field to only 100 million standard cubic feet per day (MMCFD) from between 160 MMCFD and 180 MMCFD normally. Of the 100 MMCFD of gas supplied by BP, about 60 MMCFD go to PLN, 25 MMCFD to PGN and 15 MMSCFD to Petrokimia Gresik.

BP Indonesia has the contract to supply about 600 MMCFD of gas to East Java but it could meet the contract due to the decline in the company?s gas production. The leakage in the pipeline further worsen the company?s capacity to supply gas to the province. (*)