PLN hesitant to absorb TSB gas at full capacity

By Godang Sitompul

State utility PLN doubted that it can absorb gas supply from Terang, Sirasun, Batur (TSB) fields of Muriah Block owned by Kangean Energi Indonesia, a subsidiary of PT Energi Mega Persada, at its full supply capacity of 130 bbtud.

?PLN can only absorb at 100 bbtud, not at its full capacity of 130 bbtud as there is also coal supply, more competitive to be used,? PLN Fuel Oils and Gas Division Head M. Suryadi Mardjoeki told Petromindo.com in Jakarta on Friday.

Suryadi said that PLN was also asked by PT Petrokimia Gersik to absorb part of the gas production from Kangean field. ?But this is not final yet. We?re in a process of discussions. Petrokimia Gresik is not able to absorb all of its allocated supply and has asked PLN to absorb some,? he said.

PT Pertamina Gas (Pertagas), a subsidiary of state owned oil and gas firm PT Pertamina, said recently that it was ready to distribute 100 mmscfd from the Terang, Sirasun and Batur (TSB) fields belonging to PT Kangean Energi Indonesia to customers in East Java. ?From the transporter?s point of view, we are ready. In fact, for the past two days, we have been delivering 300 mmscfd of gas from the TSB fields to PT PLN, PT Petrokimia Gresik and other customers,? Pertagas President Director Gunung Sardjono said recently.

By contract Pertagas is obliged to buy 100 mmscfd from Kangean. ?God willing, we?ll give it the best effort to absorb the gas at least in accordance with the contract,? Gunung had said.

Previously, Rudi Rubiandini, then the Deputy of Operation of upstream authority BPMIGAS, said that contracted buyers of gas from the Terang, Sirasun and Batur (TSB) fields must be ready to receive the gas in full capacity. But there had been no follow-up steps so far.

Editing by Benget Besalicto Tnb.