PLN facing gas shortage until 2015

State electricity firm PT Perusahaan Listrik Negara (PLN) will suffer a gas supply deficit to its gas-fired power plants until 2015 due to the continuous decline in Indonesia?s gas production, Investor Daily reported Monday.

PLN?s deputy head for primary energy Tonny Agus Mulyantono said that PLN is facing gas deficit of up to 833 million standard cubic feet per day (MMSCFD) in 2006 and 634 MMSCFD in 2007. The company will face another deficit of 653 MMSCFD and 697 MMSCFD gas in 2008 and 2009 respectively. The deficit will continue until 2015.

Exploring the utilization of gas flare at Tuban block in East Java is seen as one of the solutions to the gas deficit problem. PLN will use the gas flare about 5-7 MMSFD as fuel for its planned 10-20 megawatts (MW) power plant at Tuban area.

?We are still negotiating with the owner. After reaching a deal on the price, volume and the time frame, we will build the plant immediately,? Tonny said.

PLN will study the possibility of cooperating with state oil and gas company Pertamina to develop gas field at Secakang, Anggur, Kabuma, in Medan, North Sumatra. "Continuous efforts will be made to utilize the gas flare potential," Tonny said.

Meanwhile, upstream oil and gas regulating regulator BP Migas chairman Kardaya Warnika said that PLN can save up to Rp 9 billion per month from the utilization of gas flare if compared to the utilization of fuel.

Moreover, the price of gas flare is at present $1.1 per MMBTU, much cheaper compared $3.5 per MMBTU set for the gas. (*)