PLN starts receiving gas from PGN

Publicly listed gas distributor PT Perusahaan Gas Negara (PGN) is finalizing the preparation for the supply of gas to the 900-MW Muara Tawar combined cycle power plant in Bekasi, West Java.

PGN?s corporate secretary Heri Yusuf said in Jakarta on Wednesday the company would commence the gas supply to the power plant with a capacity of 30 million cubic feet per day as soon as the final preparation was completed later this week.

"A trial run has been running since Sunday to set and test the system. The gas supply volume is up and down and thus unstable," Heri said, adding the trial run would take several more days to complete.

He said that the company would increase the gas supply to the power plant to 60 million cubic feet per day next month before raising the gas transmission volume to 200 million standard cubic feet per day later in December, this year.

According to the existing contract, PGN will supply 200 million cubic feet of gas per day (MMCFD) to the Muara Tawar power plant, with an option to increase the supply by 100 MMCFD. Besides PGN, the power plant will also receive a gas supply of 30 million standard cubic feet per day from Pertamina.

PLN buys PGN?s gas under two contracts; the first 50MMCFD at US$4.5 per MMBTU for five years and the remaining balance at $5.6 per MMBTU for three years. Meanwhile, PLN will pay $4.5 per MMBTU for Pertamina?s gas. (bernard)