Exspan resumes gas supply to East Kalimantan power plant

Oil and gas company PT Exspan has resumed gas supply to the Tanjung Batu power plant in East Kalimantan, at least until the end of this year, the local Kaltim Post daily reported Wednesday.

The paper quoted head of the provincial office of the state electricity company PLN Indra Sofnil as saying that the gas supply resumption was made following a recent negotiation facilitated by the provincial governor.

However, Indra said that if PLN continue to be unable to repay Exspan for the gas supply, the latter would have to stop the supply again.

Exspan had stopped supplying gas to the power plant for quite some time after PLN could not pay for the gas it received. The paper did no say why PLN was unable to make the repayment.

The Tanjung Batu power plant controls 55 percent of the East Kalimantan power supply. The halt in the gas supply has been one factor disrupting electricity distribution in the province.(*)