Exspan starts supplying gas to Indralaya power plant in S. Sumatra

Oil and gas producer PT Exspan Nusantara, a subsidiary of PT Medco Energi International Tbk, has begun to supply natural gas to a 50-megawatt (MW) power plant in South Sumatra which is owned by state owned PT Indonesia Power, Exspan said on Wednesday.

Natural gas for the power plant comes from Exspan?s gas fields in South Sumatra namely Rambutan, Teras, Lagan, Pian and Gunung Kembang, the company said in a press statement.

The power facility is located in Indralaya district in Ogan Komering Ilir regency. PLN dedicated the power plant on Nov. 13 and would develop the capacity into 2x50-MW in 2003.

Exspan?s gas marketing vice president Pudjo Suwarno said Exspan?s natural gas for the power plant was sold at US$1.70 per million British thermal unit (MMBTU).

Pudjo said with current capacity the Indralaya power plant would help reduce power shortage in South Sumatra from 75 MW to 25 MW.

He said the company had also planned to supply natural gas to other power plants in South Sumatra so as to minimize power shortage in the region. Among them will be the Betung power plant in Musi Banyuasin regency which has capacity to generate 20 MW of electricity; and two other plants in Prabumulih and Lubuk Linggau regencies which are under construction and which have capacity of 100 MW and 50 MW, respectively.

Exspan will transmit natural gas from its Kaji-Semoga field to the three power projects. The company expects to complete in 2003 the construction of facilities to supply gas to the plants. (leo)