Petroselat ready to deliver gas to PLN in Riau

By Febry Silaban

Petroselat Ltd. said it is ready to deliver gas between 1.5 and 5 mmscfd of gas from the Selat Panjang block in Riau to state-owned electricity firm PT PLN?s gas turbine power plant in Siak Regency, Riau Province.

"We are currently in the preparation of gas delivery procedure (GDP) and gas-in before starting commissioning gas to PLN," Petroselat?s President & GM Indra Hudaya told Petromindo.com.

He expects the process could be completed within six months after the signing of the amendment to Gas Sales and Purchasing Agreement (GSPA) at the latest, or five months from now. The GSPA amendment was signed in May 2015 in Bantul, Yogyakarta at the time President Joko Widodo launched the 35,000 MW power plant development program.

Under that contract, which is valid for five years since gas commissioning, gas will be delivered at 1.5 mmscfd in the first six months and 3 mmscfd the next six months, and up to 5 mmscfd thereafter until the end of the contract, said Indra, adding that the contract is extendable.

However, PLN 'Senior Manager of Primary Energy Planning & Evaluation, Chairani Rachmatullah said that currently the power plant in Riau that is supposed to receive the gas from Petroselat is not yet ready to operate due to a legal problem related to ?its installed engine?.

"So the power plant is not yet ready to absorb the gas from Petroselat,? she said, while expressing hope the power plant can come into operation soon.

The Selat Panjang PSC is operated by Petroselat, a joint operation company formed by PT Petronusa Bumibakti (51 percent), PetroChina (45 percent), and International Mineral Resources Inc. (IMRI) (4 percent). In July 2003, IDX-listed PT Sugih Energy Tbk. acquired 55 percent participating interest in the PSC through the purchase of Petronusa and IMRI.

The Siak turbine gas power plant currently has a capacity of 14 MW, which PLN plans to expand to 25 MW within the next two years.

Editing by Johannes Simbolon