PGN to supply gas to two power projects in Batam

State-owned gas transmission and distribution PT Perusahaan Gas Negara Tbk (PGN) said Thursday two independent power producers in Batam Island intended to use natural gas to fuel their proposed power plants.

PGN finance director Djoko Pramono said Thursday in Batam that PT Dalle Energy and PT Bukaka Barelang Energy would need around 4.4 million cubic feet per day (MMSCFD) and 7.3 MMSCFD of natural gas supply, respectively, from PGN.

Djoko, however, did not say when gas supply will be commenced.

Currently, PGN supplies natural gas to PLN Batam at 4.7 MMSCFD to fuel the 2x 27.5-megawatt Panaran power plant. Meanwhile, other customers are PT Ecogreen Oleochemical and PT Citra Tubindo Tbk.

Djoko said PGN estimated about 86 percent of potential gas users in Batam island were power producers. With oil-based fuel prices soaring and supplies tightening, the power producers will choose natural gas as fuel source, Djoko added. (godang)