PLN to get CNG supply from ?Perusda Sumsel?

By Godang Sitompul & Edi Junaedi

State electricity company PLN will sign a purchase agreement of about 3 million standard cubic feet per day (mmscfd) of compressed natural gas (CNG) from Perusda Sumsel, an energy and mining company owned by the South Sumatra provincial government.

Under the sales contract, which will last for nine years until 2021, natural gas would be first processed into CNG and kept at about 250 bar pressure before being released to meet PLN?s gas needs during peak hours. The CNG supply will reach 12 mmscf for five hours.

?PLN will sign sales purchase agreement of CNG which will be processed in Jakabening, South Sumatra, to meet surging gas needs during peak hours where gas demand reaches 50 MW. This can save about US$54,000 per day,? the head of the fuel and gas procurement of PLN, M. Suryadi Mardjoeki told Pertomindo.com.

The sales purchase agreement will be signed next week, he said, adding that PLN will also receive CNG supply from Sei Gelam (TAC EMP/PEP and PEP) and Santos Sampang later this year. In 2013, PLN will receive additional CNG supply from the region.

Editing by Roffie Kurniawan