Indonesia Power eyes gas supply from Cepu block

PT Indonesia Power, a subsidiary of state-owned electricity company PLN, expects to be able to get gas supply from the Cepu block in Bojonegoro, East Java to meet  gas need of the company's combined cycle power plant in Tambak Lorok, Semarang.

 

Achmad Sadikin, the production director of the company, said in Jakarta Wednesday that the Tambak Lorok power plant was currently using diesel oil to run its operation due to the lack of gas supply.

 

"We therefore need gas supply in order to be able to replace the diesel oil which is much more expensive," he said. "We hope the Cepu block could become one of our gas suppliers," he said.

 

He hoped the Tambak Lorok plant would be able to get 50 million standard cubic feet per day (MMSCFD) from the Cepu block which is operated by ExxonMobil Oil Indonesia.

 

The total needs of the power plant reach 200 MMSCFD.

 

But when asked if the power plant can get supply from the Cepu block, ExxonMobil Indonesia's spokesman Maman Budiman said that the gas from the Cepu block would not be sold. "It will be used for our own operation," he said.

 

IP is also trying to get gas supply of about 50 MMSCFD from Pertamina's Gundih gas field. The negotiation for the gas purchase is underway. Pertamina has asked for a price of $4.8 per MMBTU but IP is still waiting for PLN's green light to sign the contract.

 

If PLN agrees with the deal, the power plant is expected to be able to get the gas supply from the Gundih gas field in 2010. (godang)