Gas supply from BP to East Java interrupted again

Gas supply from BP Indonesia?s gas field in Kangean, Pengerungan, Madura to East Java has been interrupted again since Friday, last week, only several weeks after the oil and gas giant resumed its normal operation following the leakage in its pipeline. This time, the gas supply interruption was caused by the failure of its hydraulic water system to separate the water from the gas drilled by the company from its offshore wells, Kompas reported on Monday.

The damage in the hydraulic system has caused a decline in the gas supply from 180 million cubic feet per day (MMCFD) to only 100 MMCFD. The gas supply to main buyers such as state owned gas company PT Perusahaan Gas Negara (PGN) has been reduced to 15 billion British Thermal Unit (bBTU) from 56 bBTU normally, PT Petromia Gresik to 15 bBTU from 30 bBTU and PLN?s subsidiary PT Pembangkit Jawa Bali to 60 bBTU from 70 bBTU.

Rachmat Sudibyo, the chairman of BPMIGAS, the government?s agency which supervises gas and oil exploration and production, said BP had informally informed him on the interruption of the gas supply. He added that BP promised to settle the problem on Monday (today).

According to Rachmat, the damage in the hydraulic system is not as serious as the recent leakage in the company?s pipeline. "The failure of the hydraulic system is not so difficult to cope with," he said, adding that BP Migas had also reprimanded the oil and gas company due to the gas supply interruption.

Rachmat said that the agency was considering imposing a penalty to BP Indonesia in the form of compensation to buyers if the company failed again to commit its supply to its buyers

Trijono, the head of the branch office of PGN in East Java, said, the company?s 12 large industrial subscribers had agreed to pay a monthly contribution to help PGN?s gas buyers who wanted to convert the use of gas to fuel.

He said that several companies such as PT Cheil Samsung, PT Surabaya Agung Indonesia and PT Miwon which all can also use diesel fuel to carry out their operation would be encourage to convert the gas to fuel to ensure a normal supply to PGN?s other customers. The cost of the gas conversion which could reach about Rp 8 billion for 10 days will be funded by the other customers. (*)