Muara Karang power plant lacks gas supply

The Muara Tawar combined-cycle power plant owned by state-owned electricity company PLN may suffer lack of gas supply due to a delay in the shipment of LNG from the Bontang Refinery to the West Java floating storage and regasification facility (FSRU).

Suryadi Mardjoeki, Head of Gas and Fuel Division at PLN, said on Wednesday that PT Nusantara Regas, the operator of the FSRU, has promised LNG shipment twice a month. The first shipment was made in May 2012 at a volume of 140 mmscfd, but the second shipment has yet to arrive, raising concern that the Muara Karang power plant may suffer disruption in the gas supply.

?This means that Nusantara Regas has not been consistent with the (delivery) schedule that has been agreed,? said Suryadi as quoted by Kontan daily, adding that due to the delay, gas supply to the PLN unit has been reduced to 55 mmscfd.

Deputy for Operation at upstream oil and gas regulator BPMigas, Rudi Rubiandini, acknowledged there has been a delay in the LNG shipment from Bontang to the West Java FSRU, but this was not due to a decline in LNG production at Bontang.

Rudi said that this was mainly due to the inability of PLN to fully absorb the gas supply from the West Java FSRU as has been agreed under the gas supply deal signed by PLN and Nusantara Regas.

Suryadi denied such suggestion, pointing out in fact that Nusantara Regas could only supply gas to the Muara Tawar plant at a volume of 165 mmscfd, far below the plant?s requirement of 400 mmscfd. This was mainly because Nusantara Regas has yet to complete the construction of the necessary gas pipeline connecting the plant and the FSRU facility.

Meanwhile, Nusantara Regas President Director Hendra Jaya said that the second LNG shipment from Bontang will arrive at the end of June. He also denied suggestion that his company has reduced gas supply to PLN. (*)