PLN calls on Pertamina to soon realize Arun project
Tuesday, October 30 2012 - 04:05 AM WIB
State electricity company PT Perusahaan Listrik Negara (PLN) is calling on state owned oil and gas firm PT Pertamina to soon realize its Arun regassification project in Aceh so that its Belawan power plant in North Sumatra can immediately switch from oil fuels to gas.
?We need to soon switch from oil fuels to gas at Belawan in order to improve efficiency,? PLN?s President Director Nur Pamudji told Petromindo.com.
He pointed out that the Supreme Audit Agency (BPK) had criticized the firm for inefficiency as a result of using expensive oil fuels rather than cheaper gas at eight power plants, including the PLTGU Belawan combined cycle power plant.
He recalled that the Belawan power plant used gas in its operation back in 2002 thanks to the availability of gas supplies from Pertamina. Today, however, the power plant has been forced to use oil fuels because reserve at the field that is used to supply gas to the power plant has much depleted.
In order to solve the problem, state owned gas distribution company PT Perusahaan Gas Negara (PGN) has proposed to build a floating LNG terminal offshore Belawan to supply gas to the power plant. The government has however scrapped the project and, instead, given the greenlight for Pertamina to supply gas to the power plant from Arun. Pertamina plans to convert the Arun LNG plant into an LNG receiving terminal that will supply gas to Aceh and North Sumatra.
Editing by Johannes Simbolon