Operation of Batam?s new power plant might be delayed

The operation of the new combined cycle power plant in Panaran, Batam might be delayed from its initial schedule of September, this year, due to disagreement over the price of gas to be supplied to the new power plant, Bisnis Indonesia reported on Friday.

Ali Herman Ibrahim, the director of power generation and prime energy of state owned electricity company PLN, said on Thursday that the higher gas prices required by the upstream oil and gas authority BP Migas might hamper the operational schedules of the 55MW power plant which is now in its completion stage.

?PLN Batam (the owner of the new power plant) has agreed to buy the gas at US$2.99 per MMBTU but BP Migas wants higher prices at US$3.19 per MMBTU,? he said.

PLN and gas producer ConocoPhillips have reached an agreement on the gas purchase. Under the agreement, PLN will buy gas from Conoco of about 15 million standard cubic feet per day in 15 years, at a price of US$2.99 per million British thermal unit (MMBTU).

The price is, however, subject to approval from BP Migas. (*)