PJB and Kodeco renews gas purchase contract

PT Pembangkit Listrik Jawa Bali (PJB) will receive gas supply of about 90 million standard cubic feet per day (mmscfd) from Kodeco in 2003 under the new contract signed by the two companies in Surabaya on Monday. The new supply increases from 73 mmscfd committed by Kodeco this year, Bisnis Indonesia reported on Tuesday.

Under the new contract, PJB which operates PLN?s power plants in Java and Bali will buy the natural gas from Kodeco at US$2.51 per million British thermal units (mmbtu).

Tjahyo Sasmoko, PJB?s director for commerce and development said the gas would be supplied to meet the gas demand of the company?s power plants in Gresik, which recently suffered gas shortage due to the decline in the gas supply from BP Indonesia?s Kangean gas field.

He said that although there would be an increase in the gas supply from Kodeco, the total gas supply that would be received by the company to operate its power plants in Gresik would be still lower than the total demand which reaches 270 mmscfd next year.

"We this year receive 209 mmscfd (136 mmscfd from BP and 73 mmscfd from Kodeco). The supply is expected to decline to 162 mmscfd next year due to decline in the supply from BP Pagerungan," he said.

PJB operates three blocs of combined cycle power plants with total capacity of 1,500 MW in Gresik, in addition to its two steam power plants with a capacity of 400 MW and gas power plant with a capacity of 20 MW. The gas needs of the power plants reach 270 mmscfd a year. (*)