PLN wants Simenggaris gas for PLTGU Tanjung Batu

By Godang Sitompul

State owned electricity firm PT Perusahaan Listrik Negara (PLN) wants gas from Simenggaris block in Tarakan, East Kalimantan to be supplied to PLTGU Tanjung Batu combined cycle power plant in Kutai, East Kalimantan.

?PLN wants the gas to be converted into LNG before being transported to the power plant. The power plant has been using oil fuels for seven years due to the lack of gas supplies,? PLN?s Oil Fuels and Gas Division Head Suryadi Mardjoeki said.

Simenggaris is operated by PHE-Medco JOB, a partnership between Pertamina Hulu Energi (PHE), a subsidiary of state owned oil and gas firm PT Pertamina, and PT Medco Energi Internasional.

Suryadi said a recent meeting at the Ministry of State-Owned Enterprises decided to allocate the gas from Simenggaris to PLTGU Tanjung Batu.

Meanwhile, Medco?s Corporate Secretary Imron Ghazali said a gas sales and purchase agreement for Simenggaris gas has not yet been finalized.

?It will take time to finalize the agreement. It is not simple. There are many things that must be clear: Has PLN been ready? When will the gas should be supplied? Which unit of PLN that will receive the gas? How about the transportation, pricing etc,? Imron said.

Editing by Johannes Simbolon