ONWJ?s gas supply to PLN?s power plants to run out in April 2015

By Febry Silaban

Supply of gas from the ONWJ block operated by PHE ONWJ, a subsidiary of state owned oil and gas firm PT Pertamina (Persero), to two power plants in Jakarta, namely PLTGU Muara Karang and PLTGU Tanjung Priok, is projected to run out in April 2015 and there is no substitute for the gas, according to a senior official of the state-owned electricity company PT PLN (Persero).

"The gas selling contract between PHE ONWJ and the Muara Karang and Tanjung Priok power plants expires in 2017 with a supply volume of 100 mmscfd. However, PLN always absorbs 120-130 mmscfd, even up to 150 mmscfd. We thus estimate that by volume the gas supply will run out in April 2015," PLN's Senior Manager of Primary Energy Planning and Evaluation Chairani Rachmatullah told Petromindo.com.

She explained that gas contracts generally end on the consumation of either of two factors, namely time and volume, whichever comes first. The ONWJ?s contract is supposed to be finished in 2017, but the volume will be depleted next year because PLN has taken most of the gas covered in the contract.

"Currently we've been talking about it with the government and (upstream authority) SKK Migas is looking for a replacement for the gas," she said.

In addition, there are some other existing gas contracts which expire this year and next and there isn?t yet any subtitute for gas to be delivered to PLN, according to her. They include the contracts between Medco-operated Lematang and SCS blocks and PLN?s gas turbine power plants at Borang, Kramasan, and Indralaya in South Sumatra which all expire at the end of this year and next year.

Editing by Johannes Simbolon