PLN protests PGN?s plan to sell gas to Bekasi Power

By Godang Sitompul

State owned electricity firm PT Perusahaan Listrik Negara (PLN) has voiced protests against plans by state owned gas distributor PT Perusahaan Gas Negara (PGN) to sell the Gajah Baru gas to a privately-owned power plant in Bekasi, West Java.

Suryadi Mardjoeki, Oil Fuels and Gas Division Head at PLN, told Petromindo.com on Monday that the firm has sent a letter to upstream authority BPMIGAS to voice protests and question if the agency has given a go-ahead to the plan.

Kontan earlier reported that PGN is approaching PT Bekasi Power, which supplies power to the Jababeka industrial park in Bekasi, to buy the gas from the Gajah Baru field in West Natuna operated by Premier Oil Plc. The plan to sell the gas to Bekasi Power came after state-owned steelmaker PT Krakatau Steel Tbk refused to take the gas following disagreement on price. Initially, the gas was allocated for PLN?s PLTGU Muara Tawar combined cycle power plant but PGN cancelled the plan to deliver the gas to the power plant on the grounds its Muara Bekasi gas terminal, which serves as delivery point to the power plant, has been in full capacity.

Suryadi said in the letter, PLN questioned why it is technically possible for PGN to deliver the gas to Bekasi Power, but impossible to deliver the gas to PLTGU Muara Tawar.

Editing by Johannes Simbolon