Krakatau Steel allegedly can?t afford Gajah Baru?s gas
Wednesday, July 4 2012 - 05:42 AM WIB
State owned steelmaker PT Krakatau Steel has allegedly declined the offer to take the gas from Gajah Baru field in west Natuna Sea because the price set by state owned gas distributor PT Perusahaan Gas Negara (PGN) for the gas is too high.
?I?ve got the information from Heri Poernomo (Director of Program Management at the Directorate General of Oil and Gas) that Krakatau Steel can?t afford buying the gas at the price level once agreed upon by PLN and BPMIGAS,? Suryadi Mardjoeki, Head of Oil Fuel and Gas Division at state owned electricity firm PT Perusahaan Listrik Negara (PLN) told Petromindo.com.
According to PLN, the price that has been agreed upon by BPMIGAS and PLN for the gas is $8.7 per mmbtu.
No official of PGN can be reached for comments
The gas is initially allocated for PLN?s PLTGU Muara Tawar combined cycle power plant in Bekasi, West Java. But, since the gas terminal in Muara Bakau, West Java, owned by PGN through which the gas is supposed to be channelled to the power plant is now in full capacity, PGN is now seeking to divert the gas to Krakatau Steel in Banten.
Editing by Johannes Simbolon