The problem is with PGN, says PLN
Monday, September 3 2012 - 04:32 AM WIB
While upstream authority BPMIGAS is still discussing potential sales of gas from Premier Oil-operated Gajah Baru field to other customers, state owned utility PT Perusahaan Listrik Negara (PLN) stands ready to receive the supply.
The Gajah Baru gas was initially planned for PLN?s Muara Tawar power plant in Bekasi, West Java, but due to the lack of capacity in PT PGN?s pipeline in distributing the gas, the government and BPMIGAS have been seeking ways to find alternative buyers.
However, Head of Oil and Gas Fuel Division at PLN Suryadi Mardjoeki said the firm remains ready to receive the supply of 40 bbtud as long as the authority could resolve the problem of PGN?s pipeline.
?The Gajah Baru gas allocation depends on BPMIGAS. We can absorb 40 bbutd, but is PGN capable? PGN was the problem the last time around,? he told petromindo.com.
Previously, the Energy and Mineral Resources Ministry has asked BPMIGAS to distribute gas from the Gajah Baru field in Natuna to industrial consumers in Batam and Sumatra. Meanwhile Premier has recently said that while discussions with potential buyers continue, Premier does not expect any gas to be delivered under this swap agreement in 2012.
Editing by Dadan Wijaksana