PGN gas allocation for PLN less than target
eyeing CBM block tender
Thursday, May 26 2011 - 02:03 AM WIB
Allocation for industrial users in the same period reached 320 mmscfd, also lower compared to the target of 330 mmscfd, PGN president director Hendi Prio Santoso said on Wednesday
He said the failure to meet the target was because of the limited infrastructure facility as the company has yet to complete the construction of the planned Floating Re-gasification and Storage Unit in North Sumatra and West Java.
?Currently, gas distribution still relies on pipelines,? Hendi said.
PGN is also interested to participate in coal bed methane (CBM) tender to be held by the government this year, Hendi said, adding that the company could either go alone or form a consortium to acquire CBM blocks.
Meanwhile, industries in East Java demand PGN to pay penalty over plans to stop gas supply for industrial consumers in the province as a consequence of the planned repair work of rig facilities at the Maleo gas field in Sampang PSC, offshore East Java.
Secretary General of the Industrial Gas Consumers (FIPGB), Achmad Widjaya said that PGN must pay penalty because the planned repair work at the Maleo jack-up rig facilities is not considered as a force majeure.
The repair is planned to take place between April and June 2011. Within that time period, there is a possibility of temporary shutdown for approximately 15 days to ensure repairs are conducted in a safe and operationally efficient manner, Santos said on March 4.
The Maleo field, located in the Sumenep Regency, produces an average of 120 mmcfd of gas supplied to PGN for use in various industries in East Java. (*)