PLN seeking LNG import
Monday, October 1 2012 - 01:47 AM WIB
State-owned electricity company PLN is seeking to import LNG as it anticipates a decline in the supply of LNG from the Bontang refinery, according to a company senior official.
LNG supply from the Bontang refinery to the Floating Storage and Regasifcation Unit (FSRU) at the Jakarta Bay for next year is estimated at 1.25 million tons. PLN anticipated that the supply volume will decline by up to 0.75 million tons per annum going forward.
The FSRU supplies the gas to PLN?s gas-fired Muara Karang and Tanjung Priok power plants in Jakarta. The two power plants require gas supply of 400 mmscfd.
Soeryadi Mardjoeki, Head of Gas and Fuel at PLN, said that due to the expected decline in the LNG supply from Bontang, the company will seek LNG import, while acknowledging that it would be quite difficult given the current high price of LNG in the international market.
?LNG suppliers (in the international market) now want to deal directly to end users such as PLN to avoid a longer chain, which only makes it more expensive,? Suryadi said, but declined to disclose the names of the potential overseas LNG suppliers. ?I have received offers from several producing countries.?
Editing by Reiner Simanjuntak