Gas supply to Panaran 2 power plant to be reduced by 50 percent

The gas supply to Panaran 2 gas-fired power plant may be reduced by 50 percent from the present level starting from November this year, Bisnis Indonesia reported Thursday .

Batam?s electricity firm PT Pelayanan Listrik Nasional public relations manager Ade Sulistiyani said that gas is beneficial but there is a worry about its supply.

?The availability of gas in the short term for several power plants will certainly be a problem. For the Panaran 2 gas-fired power plant, the gas supply will be reduced by 50 percent starting from November 2007,? Ade told Bisnis Indonesia recently.

Ade said that the information of reduction was given by state gas utility PT Perusahaan Gas Negara (PGN) and the gas company didn't mention about any reason for the reduction.

PLTG Panaran 2 has 55.5 MW capacity with two gas turbine of 27.75 MW each. The PLTG is operated by Medco Power Indonesia?s (MPI) subsidiary, PT Dalle Energy Batam, which was established by MPI and PT Dalle Energi and PT Dalle Panaran.

Besides the reduction in gas supply, the electricity firm is also worried about the price of gas at Panaran and Kabil power plants.

For Kabil gas-fired power plant, the gas with a price of US$4 per million British thermal unit (MMBTU) will be available only up to April 2007. Starting from 2008, the price will be increased to $4.5 per MMBTU. (*)