PLN fails to absorb Gajah Baru gas due to infrastructure obstacle

By Godang Sitompul

State-owned electricity company PLN said it was willing to absorb gas from the Gajah Baru field in the Riau Islands operated by Premier Oil, but the problem is the limited capacity of the Muara Bekasi gas receiving facility in West Java owned by state-owned PGN, which distributes the gas to the Muara Tawar power plant.

PLN Head of Fuel and Gas M. Suryadi told Petromindo.com on Tuesday that the capacity of the Muara Bekasi facility is only 530 mmscfd.

?The (main) problem is the metering capacity which only stands at 530 mmscfd,? Suryadi said.

He added, that PLN is currently waiting for confirmation from PGN, the state-owned gas distribution company, which said to have plans to make new investment in bolstering the capacity of the Muara Bekasi station.

Regarding plans that the Gajah Baru gas would be diverted from PLN to state-owned steel miller PT Krakatau Steel, Suryadi said that he had received information that there is no agreement yet on the price issue.

Editing by Reiner Simanjuntak