Medco wants to supply more gas to PLN

Medco wants to supply more gas to PLN

The Jakarta Post
Jakarta

Publicly listed energy company PT Medco Energi International is
seeking to increase its gas supply to state-owned electricity
company PLN as a source of energy both for existing power plants
and future ones.

The two companies on Thursday signed a memorandum of
understanding (MoU) for this purpose. The MoU was signed by Medco
president Hilmy Panigoro and PLN president Eddie Widiono.

PLN's need for gas will continue to increase in the future as
the company will develop new power plants.

Additional power demand until 2005 in Java alone is projected
to be between 11,000 Mega Watt (MW) to 12,000 MW, and around
5,000 MW to 6,000 MW outside Java.

Currently, Medco supplies 30 million cubic feet per day of gas
to PLN for power plants in Tanjung Batu, East Kalimantan, and in
Hidralaya, in South Sumatra.

But the company has quite abundant gas reserves, the
equivalent of between 900 million to 1 billion barrels of oil.

Medco is also planning to set up a receiving liquefied natural
gas (LNG) terminal in Java to anticipate the development of the
Muara Tawar, Tanjung Priok, and Muara Karang power plants.

The gas will come from Medco's gas field in Luwuk, South
Sulawesi.

Meanwhile, PLN vice president Eden Napitupulu was quoted by
Kompas as saying that the state electricity company would provide
greater opportunities for Medco as a national company to supply
gas to PLN, but it would not completely shut its doors to better
offers made by other gas companies.