PLN calls off 2007 fuel supply tender

State electricity firm PLN said it had decided to call off fuel supply tender for 2007 period as all of its requirement had already been contracted to state oil and gas company PT.Pertamina.

?Fuel supply tender may be opened again next year as all of PLN fuel supply requirement until December 2007 has been contracted to Pertamina,? PLN Director Ali Herman Ibrahim told Petromindo.Com Thursday.

PLN had invited some potential supplier to participate in the fuel supply tender in a bid to find cheaper alternative from its current sole supplier PT.Pertamina. The move has apparently forced Pertamina to offer cheaper price to PLN as the latter is now able to buy the fuel at MOPS + 9%, a steep reduction from previous price of MOPS + 14.1% .

Ali Herman said PLN would need some 8 million kiloliters of fuel for 2007. (godang)