PLN will get additional 372,667 BBTU gas supply next year

Coordinating Economic Minister Hatta Rajasa said that state electricity company PLN would receive additional gas supply of 372,667 billion british thermal unit (BBTU) next year to help the company reduce its dependence on oil.

"In order to meet the target, the government will prioritize the use of the country?s gas production for domestic market, especially PLN,? Hatta said during a hearing with the Commission VII if the House of Representatives in Jakarta on Wednesday.

To ensure sufficient gas supply for local industries, the government would continue to reduce gas exports such as by terminating gas sales contracts to Singapore, Hatta further explained.

He also said during the hearing, that PLN would receive a subsidy of Rp 45 trillion from the government next year. About 49 trillion of the total subsidy has been allocated in the 2012 state budget, and another Rp 4.5 trillion from the undisbursed subsidy of this year. (*)