PLN will be in shortage of gas supply until 2007

A number of power plants operated by state owned electricity company PLN will be in shortage of gas supply at least until 2007, the company's senior executive Tonny Agus has said.

Speaking to reporters on Tuesday, Tony said that PLN would still need gas supply of at least 200 million standard cubic feet per day (MMSCFD) for its combined cycled power plants PLTGU Tambak Lorok in Semarang; PLTGU Grati, East Java; PLTGU Tanjung Priok, Jakarta; and PLTGU Gresik, PLTGU Muara Karang, and PLTU Muara Tawar, in West Java.

"At present, these power plants still use diesel oil to carry out their operation," he was quoted by Investors Daily as saying. According to him, to cope with the gas supply problem, PLN has signed purchase agreements with a number of gas producers including EMP Kangean, Amerada Hess, Kodeco Energy, BP West Java and Petronas.

"But the gas supply will begin only in 2007 and 2008," he added. He also said that PLN had decided to use liquefied petroleum gas (LPG) to operate the 6 MW-PLTGU Payo Selincah power plant in Jambi. The LPG is provided by PT Medco Energi International, with supply capacity of about 20 tons per day. PLN will use LPG for other power plants including PLTGU Sunyaragi Cirebon and PLTGU Tambak Lorok in Semarang. (*)