Indonesia Power negotiating with gas producers on gas supplies
Friday, September 15 2000 - 07:00 AM WIB
Power company PT Indonesia Power, which was formerly known as PT Pembangkit Jawa Bali I, a subsidiary of state electricity company PT PLN, is negotiating with several natural gas producers on gas sale and purchase contracts.
Company corporate secretary Lili Tjarlie Tahlan told Petromindo.Com on Wednesday the negotiations followed the company's plan to use natural gas in place oil-based fuel in operating its power plants.
He said the power plants where the company would switch from oil-based fuel to gas include the Tambak Lorok plant in Semarang, Central Java; the Grati power plant in Pasuruan (East Java), the Sunargih power plant in Cirebon, Central Java and the Muara Tawar power plant in Bekasi, West Java.
"We choose gas because aside from being environmentally friendly, it has a higher thermal efficient than coal or oil-based fuel. Resides the use of gas make the life of power plant longer", he said.
For the supply of gas to the Tambak Lorok power plant, Indonesia Power was negotiating eith Beyond Petroleum (BP), Lili said, adding Indonesia Power expected to agree on the price for the gas with BP this year that the power plant could start using gas at the power plant.
"Today, several companies, including Lapindo Brantas and Premier Oil, are negotiating with Indonesia Power. But, we have yet to decide which one of them will be our supplier. For sure, we have to sign contracts this year that the plan of using gas at the power plant can be realized in 2004," Lili said.
He noted however that Indonesia Power was still facing difficulties to find potential gas suppliers for the Muara Tawar power plant as no gas companieshad found enough gas reserves around the area.
Lili however did not specify whether the company had found potential gas suppliers for the Sunaragih power plant (lia)