PLN unlikely to receive gas from Kepodang gas field in Q1
Friday, January 20 2012 - 01:07 AM WIB
State electricity company PT PLN is unlikely to get supply of gas from Kepodang gas field operated by Malaysia?s Petronas in the first quarter to power its Tambak Lorok gas fired power plant in Central Java.
PLN President Director Nur Pamudji told Petromindo.com that if until end of first quarter, gas from Kepodang gas field failed to flow to its power plant, PLN may have to import fuel again for the power plant.
Separately, M Suryadi Mardjoeki, Division Head for Fuel and Gas Procurement of PLN, said PLN has set a plan to receive 160 BBTUD from Kepodang gas field in the first quarter. Otherwise, PLN have to import fuel to cover the unavailability of gas.
Director General for Oil and Gas at the Energy and Mineral Resources Ministry (ESDM) Evita H. Legowo said late last year, the government would make a decision on the scenario of the development of Kepodang gas field by end 2011. However, the energy ministry has yet to make a decision on the matter, causing the delay of the gas flow.
The energy ministry is facilitating the talks on the Kepodang gas development between the upstream oil and gas regulator BPMIGAS and Petronas.
The project has been delayed due to changes in scenario of the Kepodang field development.
In 2008, PLN made an agreement with Petronas that it would receive 354 billion cubic feet (BCF) of gas until 2021 from 4th quarter 2011. According to the initial plan, the pipeline would be built by Petronas as part of its contract in the operation of the Kepodang gas field.
In 2009, Bakrie & Brothers, holder of the Kalimantan Java gas pipeline project, proposed to build the pipeline network from the Kepodang field to the Tambak Lorok Power Plant as part of the company?s Kalimantan-Java pipeline project. Somehow, the government later approved this proposal of Bakrie & Brothers.
The change of scenario had sparked some friction between the government and Petronas, causing the delay in the development and delivery of the Kepodang gas field. It is not clear yet when the government will decide the scenario development of the Kepodang gas field and the timetable for delivering gas to Tambak Lorok power plant.
Editing by Roffie Kurniawan