Tambak Lorok prefers gas from Kepodang than from Semarang FSRU

By Bernard Loebs

State owned utility company PT PLN said it prefers its Tambak Lorok power plant in Semarang to receive gas from the Kepodang field rather than from the planned Central Java Floating Storage and Regassification Unit (FSRU) due to cheaper price.

?So we expect gas supply for Tambak Lorok to come from Kepodang. The price will be much cheaper if compared to the gas supply coming from the FSRU. The LNG price alone for gas from the FSRU already hovers at $11 (per mmbtu), excluding costs for transportation, the regassification and pipeline,? PLN Director of Construction Nasri Sebayang told petromindo.com. ?In comparison price of gas from Kepodang would only be about $5 to $6. Even with a toll fee, it would still be cheaper than the gas from the FSRU,? he said.

The Central Java FSRU project has been called into questions lately for fears of lack of buyers. State Minister for State Enterprises Dahlan Iskan had said that the FSRU in the province is no longer necessary.

Tambak Lorok power plant, which is projected to be the main buyer of gas from the planned FSRU, currently stops operation and will be revived again if gas supply from Kepodang field in Muriah PSC, which is located some 200 km off the northern coast of the province and operated by Petronas Caligari, begins to flow in 2014, the Ministry?s Director General of Electricity Jarman said in April.

Editing by Dadan Wijaksana