PLN, suppliers in negotiation to supply gas to western Java?s power plants

State electricity firm PLN is still in negotiations with three companies intending to supply natural gas for its power plants in West Java, Jakarta and Banten, PLN president Widiono Suwondo said Monday.

The three are BP Plc, state gas transmission and distribution PGN and U.S. oil and gas firm ConocoPhillips, Eddie said.

Eddie said that gas offered by the three firms was for existing power facilities and others to be built by PLN.

Eddie explained that BP had offered to supply the power plant with gas from its Offshore Northwest Java Block, while PGN had expressed interest to transmit gas to Muara Tawar from its gas terminal in Cilegon (Banten) which would be part of its South Sumatra-Banten gas pipeline project. Meanwhile, ConocoPhillips has offered to supply the plant with gas from its Corridor gas block onshore South Sumatra.

He said further that PLN would need between 400 million standard cubic feet per day (MMSCFD) to 600 MMSCFD of gas for its power plants in West Java, Banten and Jakarta.

PLN currently operates three gas power plants in Muara Karang and Muara Tawar (West Java) and in Tanjung Priok (North Jakarta). The company had planned expansion projects on the Muara Karang and Muara Tawar facilities and was underway to build another power plant in Banten by 2010. (godang)