Shortage of gas supply affects PLN?s power plant in Gresik

The decline in natural gas supply from BP Indonesia?s Kengean field in East Java has severely affected the operation of the state owned electricity company PLN?s power plant in Gresik, Neraca reported on Saturday.

PLN?s president director Eddie Widiono said in Jakarta on Friday that the Gresik power plant?s generating capacity had declined by 200 MW to 1,300 MW from 1,500 MW due to the shortage of the natural gas supply.

In a normal situation, the Gresik power plant received gas supply of about 280 MMSCFD, of which 242 MMSCFD were supplied by BP and the remaining 40 MMSCFD by Kodeco.

The depletion in the gas reserves in BP?s Kengean field caused a drop in the gas supply to the Gresik power plant to 143 MMCFD in April. It could further decline to 47 MMCFD (million standard cubic feet per day) in December. Total gas shortage during 2002 reached 35.7 BSCF (billion standard cubic feet)

Eddie said that PLN had to buy 543,215 kiloliters of marine fuel oil and 499,437 kilo liters of HSG fuel to cope with the shortage of the gas supply. The switch in the energy supply cost PLN about Rp 290 billion in 2002, and it could further increase to Rp 950 billion (US$=Rp8,900) next year.

At least 40 industrial companies in East Java have suffered a severe shortage of gas supply due to a continued decline in the gas supply from state owned gas distribution company PT PGN, Neraca daily reported earlier.

PGN acknowledged that many industrial customers in the province are in dire need of getting additional gas supply but the company said that it could do nothing to add the supply because the price offered by gas producer Lapindo Brantas was still too high. Besides BP Indonesia, Lapindo has been assigned to fulfill PGN?s gas demand. (*)