Pertamina, BP to supply gas to PLN's C. Java power plant<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina and its
\nAnglo-American production sharing contractor BP Plc will supply
\nnatural gas to the Tambak Lorok power plant in Central Java,
\nwhich is owned by state electricity company PT PLN, under a
\nmemorandum of understanding (MOU) signed on Thursday.<\/p>\n
Sidick A. Nitikusuma, head of general affairs at Pertamina's
\nproduction sharing management, said in a statement on Friday that
\nthe MOU was signed by Pertamina and PLN in East Java province's
\ncapital of Surabaya.<\/p>\n
Under the MOU, the gas supply will begin in 2004 at a daily
\nrate of 160 million British thermal units (MMBTU), but he did not
\nspecify the period of the contract.<\/p>\n
Sidick explained that the natural gas will be supplied from
\nthe Kepodang field at the Muriah block -- which is jointly
\noperated by Pertamina and BP and located in the border of Central
\nJava and East Java -- 50 kilometers north of the Central Java
\ntown of Jepara.<\/p>\n
A 250-kilometer subsea pipeline will begin to be built in 2002
\nor 2003 to transport gas from the Kepodang field to an onshore
\nreceiving terminal near the power plant, Sidick said, adding that
\nit will cost about US$350 million.<\/p>\n
\"No less than 1,000 temporary workers will be employed during
\nthe project,\" Sidick said.<\/p>\n
Sidick said the Tambak Lorok power plan now used diesel oil as
\nfuel.<\/p>\n
The use of gas at the power plant will enable the country to
\ncut domestic consumption of diesel oil and curtail its imports.
\nThis will enable the country to save a large amount of foreign
\nexchange earnings, Sidick said.<\/p>\n
Pertamina still imports a large amount of diesel oil to cover
\nshortfalls from its refineries.<\/p>\n
\"The use of gas (at the power plant) will also help boost the
\nuse of gas as a clean fuel domestically,\" Sidick said.<\/p>\n
Despite the fact that Indonesia has abundant gas reserves and
\nis the world's largest liquefied natural gas (LNG) exporter, the
\nuse of gas domestically is still low because people prefer to buy
\ncheaper, subsidized oil-based fuel.<\/p>\n
Aside from the planned gas supply to the Tambak Lorok power
\nplant, BP now supplies gas from its Pagerungan field at the
\nKangean block in Sumenep regency, East Java to customers in
\nGresik, East Java.<\/p>\n
Its customers include PLN, state gas distribution company PT
\nPGN and state-owned petrochemical firm Petrokimia Gresik.<\/p>\n
It supplies the East Java customers with 330 MMBTU of gas per
\nday through a 70-kilometer underwater pipeline. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-bp-to-supply-gas-to-plns-c-java-power-plant-1447893297",
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