PGN cuts gas supply for Muara Tawar power plant

State gas distributor PT Perusahaan Gas Negara (PGN) Tbk has since March 1 reduced gas supply for Muara Tawar power plant in North Jakarta by 50 MMSCFD, citing a gas deficit.

The reduction has increased state power company PLN spending on fuel to fire the plant, Detik.Com reported.

PLN director for primary energy Nur Pamudji said on Wednesday PGN had cut supply due to disrupted gas supply from ConocoPhilips? Grissik field. PGN used to receive 230 MMSCFD from ConocoPhilips.

?We have spent a lot to buy fuel, but we are still calculating the production cost. Later at the end of the month we can find the increase in production cost,? Pamudji said.

He said PLN had asked PGN to fulfill its promise to resume the normal gas supply by April.

"They said the decline in gas supply will last until the end of March, but we don?t know whether it works,? he said.

PGN corporate secretary Wahid Sutopo confirmed the supply reduction, which he said was a result of the expiry of its contract with ONWJ field operated by Pertamina Hulu Energi at the end of February and a decline in gas supply from ConocoPhilips. Sutopo speculated ConocoPhilips had converted its gas to Chevron by between 80 and 100 MMSCFD.

Grissik supplied between 370 and 400 MMSCFD to PGN in January, but the supply fell to 300 MMSCFD in February.(*)