Indonesia Power in talks to buy gas from C. Java gas field
Saturday, June 23 2007 - 02:18 AM WIB
Indonesia Power (IP), a subsidiary of state owned electricity company PLN, is currently negotiating the possibility of buying gas from the Gundih gas field in Blora, Central Java, which is operated by PT Titis Sampurna.
"We hope to soon agree on the price of the gas from the field," IP director Ahmad Sadikin said on Friday.
The gas from the field would be supplied to the Tambak Lorok combined cycle power plant in Semarang, Central Java, which has begun operation but still uses marine diesel oil because of the lack of gas supply.
The power plant with six generators with combined capacity of 1,000 megawatt uses about 4,000 kiloliters of diesel oil per day. IP hopes that the gas supply from the Gundih field will go on stream by the end of 2008.
According to the plan, the gas field will, in the first stage, provide gas supply of about 50 million cubic feet per day (MMCFD). The total gas need of the power plant is about 200 MMCFD.
Besides the Tambak Lorok power plant, the Gundih gas field will also supply about 50 MMCFD to the Rembang gas-fired power plant in, Central Java. The gas supply will be transmitted through a 90-km pipeline spanning from Randublatung, Blora to Rembang. The gas transmission which is under 12 year contract is expected to start in January 1, 2010.
The Rembang gas-fired power plant is an independent power producer (IPP) operated by a consortium of three companies, including Indonesia Power and Titis Sampurna.
Based on the agreement, the gas will be sold to the Rembang power plant at a price of US$2.7 per MMBTU with three percent escalation per year.
Gas reserves in Gundih field reaches 0.4 trillion cubic feet. (godang)