PLN facing gas shortage until 2015

State electricity firm PT Perusahaan Listrik Negara (PLN) will have a deficit of gas supply to its gas-fired power plants until 2015. This is because of the continuous decline in Indonesia?s gas production, Investor Daily said on 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.

One of the measures that PLN will adopt to overcome the gas deficit is exploring utilization of gas flare at Tuban block in East Java. PLN will use the gas flare at 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 timeframe, we will build the plant immediately,? Tonny said.

PLN will also seek cooperation with state oil and gas company PT Pertamina in the possible use of the latter's gas flare at Secakang, Anggur, Kabuma in Medan, North Sumatra, according to Tonny.

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

He noted that gas flare now sells $1.1 per MMBTU, much cheaper than natural gas which PLN buys at $3.5 per MMBTU at present. (*)