Pertamina?s Denpasar branch ready to supply MFO to PLN

State oil and gas company PT Pertamina?s Denpasar-based Marketing V branch is ready to supply Marine Fuel Oil (MFO) to the state electricity company PT Perusahaan Listrik Negara (PLN) owned diesel-fired power plants in West Nusa Tenggara starting from April, the Investor Daily Indonesia newspaper reported in its Friday edition.

In the first phase, Pertamina will supply 50 percent of the demand of 60,000 kiloliters (KL) per year.

?We have already arranged a 2,000 KL-capacity tank at the Manggis transit terminal and we will increase the capacity to until 12,000 KL if needed,? Pertamina?s Denpasar branch head Agus Himawan said in Denpasar on Thursday.

According to Agus, Pertamina -- besides supplying the MFO to PLN in order to cut the costs ? will also provide technical help in handling the MFO. Because the usage of MFO needs a different treatment from the diesel oil at the power plants.

?PLN is currently making changes to the power plants for the suitability of the MFO and its safety,? Agus added.

In an effort to cut the impact of higher oil prices, PLN wants to turn to MFO, which is Rp 1,500 per liter cheaper than diesel.

Meanwhile, Pertamina?s spokesman M. Harun said his company has prepared a stock of 1 million KL of MFO for the usage of PLN nationwide. (*)