PLN says gas import will be last option

By Nova Farida

Petromindo

State-owned electricity firm PT PLN is unlikely to make gas import in the near term despite a new regulation which allows it to do so as the utility considers gas supply at home remains sufficient for the next five years.

PLN Procurement Director Supangkat Iwan Santoso said on Wednesday that the company will prioritize the use of domestic gas output for its power plants, and that import will only be made as the last option.

?The decision (to import) will be taken only if domestic gas production is no longer sufficient. It (import) is one of the options,? he said.

He added that LNG import will only be made if it could obtain gas at cheaper price that would in turn help bring down the selling price of electricity.

Supangkat said that until 2020, PLN?s daily gas demand is estimated at 2,100 bbtud.

Minister of Energy and Mineral Resources Ignasius Jonan has recently issued new Ministerial Regulation No 11/2017 on the utilization of natural gas for power plants including the possibility for power plant producers to import LNG.

Editing by Reiner Simanjuntak