PLN calls on govt to decide on Sengkang LNG allocation
Monday, May 19 2014 - 07:31 AM WIB
State owned electricity firm PT Perusahaan Listrik Negara (PLN) has repeated calls on the government to decide on the allocation of gas from the Sengkang LNG plant project in South Sulawesi forBali, East Nusa Tenggara and Makassar.
Sengkang LNG project owner Energy World Corporation (EWC) is constructing the first unit of the plant with a capacity of 0.5 MTPA. The company expects to build three more units with similar capacity in the future. The plant is developed under the downstream scheme, meaning that the project?s costs will not be subject to cost recovery.
State electricity firm PT PLN (Persero) in March 2013 signed HoA with EWC, under which the latter will supply LNG to PLN?s power plants in Makassar, Bali and East Nusa Tenggara.
PLN?s Gas and Oil Division Head Suryadi Mardjoeki said there isn?t yet any decision by the directorate general of oil and gas or SKK Migas regarding the allocation of Sengkang gas.
He even heard rumors that a company owned (BUMD) by the South Sulawesi government will purchase the gas from Sengkang and resell it to PLN.
?If the BUMD buys the gas and resell it to PLN, it is very questionable. PLN has the right to buy directly from LNG producers. The gas that will be bought by the BUMD can only be sold locally, while the gas that will be purchased by PLN can be used for power plants in various places,? Suryadi said.
Editing by Johannes Simbolon