Govt called to allow for development of wellhead power plant

By Godang Sitompul

The Association of Independent Power Producers (APLSI) calls on the govenrment to allow for the development of power plants at wellheads using gas from marginal fields as fuel.

?SKK MIgas and the Ministry of Energy and Mineral Resources should make it easier to get permit for gas utilization. In case any of our members is offered to build a power plant at wellhead which has a mere production capacity of 8 mmscfd, the permit won?t be easy to obtain from SKK Migas. The process will be long. In fact, the gas is available and the power plant can be quickly developed,? APLSI?s Chairman Ali Herman Ibrahim told Petromindo.com.

Ali thus called on the government to review the existing regulation which he said is prohibitive to companies willing to develop power plants at marginal fields.

?The regulation on pricing and special allocation of gas from marginal fields should be reviewed,? he said.

Editing by Johannes Simbolon