PGN still looking for buyers for Gajah Baru gas
Friday, July 20 2012 - 09:48 AM WIB
State owned gas distributor PT Perusahaan Gas Negara (PGN) is still looking for buyers for gas from the Gajah Baru field in Natuna Sea Block A PSC operated by British firm Premier Plc, Director General of Oil and Gas Evita H. Legowo said on Friday.
Evita confirmed that PT Bekasi Power, which provides electricity to the Jababeka industrial estate in Bekasi, West Java, is interested to buy the gas, but she said no deal has been signed by the company and PGN.
?We need to review the capacity of (PGN?s) infrastructure. Please note that PT Perusahaan Listrik Negara (PLN) wants the gas but it?s impossible (to deliver the gas to PLN) due to (the limited capacity of PGN?s) infrastructure,? Evita said.
The gas was initially allocated for PLTGU Muara Tawar combined cycle power plant in Bekasi owned by state owned electricity firm PLN. But, PGN said it was technically impossible to deliver the gas to the power plant due to the limited capacity of its Muara Bekasi gas terminal. PGN subsequently offered the gas to state owned steelmaker PT Krakata Steel, but the latter refused to buy it, citing its high price. PGN then approached Bekasi Power.
Evita noted that the Gajah Baru gas was part of the swap deal involving among others Premier and American firm ConocoPhilips. Under the swap deal, 40 million cubic feet of gas from ConocoPhillips? Corridor Block in central Sumatra, which was supposed to be sent to Singapore buyers, will be redirected to PLTGU Muara Tawar. It will be replaced by gas from Gajah Baru.
?Thus, the gas should be sold to domestic buyers. And the price must be above US$6 per mmbtu,? she said.
Editing by Johannes Simbolon