Govt revises downward gas supplies to PLN
Wednesday, February 16 2011 - 10:14 AM WIB
This has brought a consequence that the operating costs of PLN would increase this year as it would use costlier petroleum-based fuels to generate power.
As a consequence of using Petroleum-based fuels rather than gas, PLN?s fuel costs are expected to increase by Rp 6.6 trillion (US$=Rp 8890), Minister of Energy and Mineral Resources Darwin Z. Saleh said in a paper presented during a meeting with the House of Representatives on Wednesday.
The meeting was held following protests from businesspeople on PLN?s plan to increase electricity rate. PLN has said it has to increase the rate as a result of rising operating costs.
The 2011 state budget agreed upon by the House and the government last year set an assumption that PLN will get additional gas supplies amounting to 371.3 tbtu this year. But, in the review made on Feb. 1, 2001, the ministry projected PLN would only get additional supplies of 322 tbtu as supplies on the existing contracts are expected to decline. He did not explain the reasons behind the decline.
PLN is also expected to get additional supplies amounting to 18 tbtu from the FRSU LNG terminal now being built by state owned gas company PT Perusahaan Gas Negara (PGN) and oil and gas company PT Pertamina. The terminal is expected to start operation in December this year. (Bernard)
| No. | Supplier/Fields | State Budget | Review on Feb. 1, 2011 | ||
| Volume of supply | Start of supply | Volume of supply | Start of supply | ||
| 1. | Petrochina Jabung | 30 bbtud | January | 7.50 bbtud | October |
| 2. | Jambi Merang | 40 bbtud | June | 30 bbtud | April |
| 3. | Singa Medco | 30 bbtud | July | 12.50 bbtud | August |
| 4. | Medco SCS | - | - | 1.50 bbtud | April |
| 5. | Pertamina Sumbagut | - | - | 0.75 bbtud | October |
| 6. | Jambi Merang ex PON | - | - | 12 bbtud | April |
| 7. | ConocoPhillips | - | - | 15 bbtud | April |
| 8. | Kodeco | - | - | 6.70 bbtud | March |