PLN in talks to secure more gas to replace petroleum-based fuel

State electricity company PT PLN is seeking gas supply from a number of gas producers as part of the company?s ongoing program to replace fuel with gas to power its power plants, Suryadi Mardjoeki, PLN Director for Fuel Procurement said.

He said PLN is seeking gas amounting to 200 MMSCFD from Tangguh LNG project in Papua, operated by BP Plc; 20 MMSCFD from the Tiaka gas field at Senoro-Toili block, Central Sulawesi, operated jointly by state oil, gas company PT Pertamina and PT Medco E&P Indonesia,; 18 MMSFD from Bengkudulis in East Kalimantan operated by PT Benakat Petroleum; 6 MMSCFD from Bentu PSC in South Sumatera; 6 MMSCFD from Sengeti field; and 3 MMSCFD from Jakabaring.

Suryadi said PLN has yet to decide whether to hold tender for fuel supply or not. The company?s focus now is to secure more gas to replace more expensive fuel which is still being consumed by a number of its power plants.

Separately, President Director of PLN Nur Pamuji said it expects to sign gas swap deal with Premier Oil for a supply of 40 BBTUD of gas.

?PLN expects gas swap with Premier Oil can be signed at the end of this year,? said Nur Pamuji.

According to Suryadi, the price of gas to be purchased by PLN from Gajah Baru through a gas swap scheme with ConocoPhillips? gas from its Corridor block is higher, which will be at US$8 to US$9 per MMBTU. (godang)