PLN to use LPG in some plants<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
State power firm PT PLN is preparing to convert its plants in
\nBalikpapan, Singkawang and Pontianak, all in Kalimantan, to use
\nliquefied petroleum gas (LPG) instead of the oil they currently
\nuse to generate electricity.<\/p>\n
PLN's director of power plants and primary energy generation,
\nAli Herman Ibrahim, said the plants had a total capacity of some
\n200 megawatts.<\/p>\n
\"In the first phase we will need some 400,000 tons of LPG per
\nyear,\" he said on Thursday. \"Eventually the requirement will go
\nup to one million tons (per year).\"<\/p>\n
As global oil prices have soared and PLN's need for oil has
\nrisen past the quota set by the government, the company has been
\nlooking for cheaper alternatives to generate power.<\/p>\n
State oil and gas firm Pertamina has said that PLN may have to
\npay for some 3.09 million kiloliters of over-quota fuel at market
\nprices, which is about twice what PLN currently pays of Rp 2,200
\n(about 22 US cents) per liter.<\/p>\n
Ali said that with oil prices at US$60 per barrel and
\nunsubsidized fuel at Rp 4,800 per liter, LPG, which costs about
\nRp 3,000 per kilogram, was cheaper.<\/p>\n
\"We will use LPG to bridge our needs for three years, before
\n(natural) gas flows to our plants,\" he said.<\/p>\n
PLN and the Oil and Gas Upstream Executive Agency (BP Migas)
\nsigned a memorandum of understanding on Thursday on a pilot
\nproject to use LPG to generate power.<\/p>\n
BP Migas chairman Kardaya Warnika said the country had enough
\nLPG in its stores to meet PLN's demand.<\/p>\n
\"We are ready (to supply). We can use gas produced by the
\nBelanak field and PetroChina's Jabung field,\" he said.<\/p>\n
According to Kardaya, Indonesia produces between 3.5 million
\ntons and 4 million tons of LPG a year, of which less than half is
\nsold in the domestic market.<\/p>\n
\"All we need to know is how much PLN needs and where,\" he
\nsaid.<\/p>\n
Observes have said Indonesia must diversify its energy sector
\nas surging global oil prices threaten to double the fuel subsidy
\nfrom the current whopping Rp 76.5 trillion set in the budget.<\/p>\n
As a state company, PLN, which uses fuel to produce 18 percent
\nof its electricity supply, has been urged to utilize other fuels
\nsuch as coal.<\/p>\n
PLN's operational costs would jump by Rp 7.5 trillion this
\nyear if the government made the company pay market prices for its
\nover-quota of 3.09 million kiloliters of fuel.<\/p>\n
The company booked another net loss in 2004 of Rp 2.02
\ntrillion but managed to record an operating profit of Rp 2.56
\ntrillion, the first time since the monetary crisis in 1997 that
\nis has achieved an operating profit.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-to-use-lpg-in-some-plants-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}