PLN to get 100 MMSCFD new gas supplies from Sumatra

Three fields in Sumatra will supply a total 100 MMSCFD additional gas supplies to state owned electricity firm PT Perusahaan Listrik Negara (PLN) starting next year, greatly reducing the firm's fuel costs.

The three fields are Jabung field in Jambi, operated by Petrochina; Singa field in South Sumatra, operated by PT Medco Energi International; Jambi Merang field in Jambi, operated by the Pertamina-Hess JOB, Luluk Sumiarso, Director General of Renewable Energy at the Ministry of Energy and Mineral Resource, said on Tuesday.

Jabung will start supplying an additional 30 MMSCFD in January, Singa 30 MMSCFD in July, and Jambi Merang 40 MMSCFD in June.

"The new gas supplies will cut PLN's fuel costs by Rp 2.5 trillion per year," Luluk said.

A senior PLN official told Petromindo.com that the Jabung gas will be supplied to PT Chevron Pacific Indonesia, which needs gas to support their oil production. In return, ConocoPhillips, that now supplies gas to the firm, will divert its gas to PLN's Muara Tawar power plant in Bekasi, West Java.

According to the official, PLN has signed gas sales agreement (GSA) for gas supplies from Singa and Jambi Merang.

He said despite the GSA, oil and gas upstream sector regulator BPMIGAS has decided that the Singa gas must be diverted to state owned gas distributor PT Perusahaan Gas Negara (PGN). But, he said, BPMIGAS has yet to get support from the directorate general of oil and gas for the decision. (Bernard/Godang)