BPMIGAS says gas supply to PLN for 2012 secured

Upstream oil and gas regulator BPMIGAS said that the state owned electricity company PLN will get additional gas of 100 MMSCFD in 2012 that will enable it to generate additional 400-500 MW of electricity per day. This will reduce electricity subsidy of around Rp5 trillion, said BPMIGAS Deputy Chairman for Operation Rudi Rubiandini.

He said the additional gas will consist of 40 MMSCFD of gas from Gajah Baru field as well as around 50-65 MMSFD of gas from Jambi Merang field, operated by Joint Operating Body (JOB) Pertamina Hulu Energi and Talisman.

The gas from Gajah Baru field, operated by Premier Oil, will be swapped with gas from ConocoPhillips Corridor block. The swap deal has been agreed recently.

The flow of gas from Jambi Merang is now only awaiting for finalization of some technical matters, Rudi Rubiandini said.

The Jambi Merang gas will be transported to PLN?s gas power plant utilizing gas pipeline owned by state gas distributor PT Perusahaan Gas Negara Tbk (PGN). ?Talisman, PLN and PGN are ready to sign the agreement,? said Rudi.

In addition, PLN will also secure gas from various small gas fields in several regions. However, Rudi did not provide further details.

The supply of gas to PLN power plants also depends on the availability and capacity of gas pipeline to transport gas from gas fields to PLN power plants.

?Therefore, judging from the capacity of power plants and the availability of gas pipeline, then the supply of gas for 2012 has been met. However, from the point of view of the national electricity need, the availability of electricity is still not enough,? said Rudi. (godang)