PLN to use LPG in Sunyaragi plant

Leony Aurora, The Jakarta Post/Jakarta

State electricity firm PLN is preparing to use liquefied petroleum gas (LPG) in one of the units at the Sunyaragi combined-cycle power plant in Cirebon, West Java.

The company still needs to install pipes for one unit of 20 MW that will be converted from using diesel fuel to pressurized LPG, PLN's deputy of primary energy Tonny Agus Mulyantono said on Thursday.

"We'll be ready to try using LPG within one month, pending the availability of the supply, which is being discussed with BP Migas," said Tonny, referring to the Upstream Oil and Gas Regulatory Agency.

The unit in the Sunyaragi plant will need between 100 tons and 200 tons of LPG per day, which will likely come from Pertamina's refinery in Balongan, he added.

Sunyaragi has four units of 20 MW each, of which one is operating on natural gas and three others on high-speed diesel.

As global oil prices have soared this year and the government has decided that PLN must pay market prices -- more than double the prices PLN used to pay -- for the oil-based fuel it consumes to generate power, the company is looking for cheaper alternatives.

PLN's calculation shows that the utilization of LPG, assuming global prices of US$380 per ton for LPG and Rp 4,800 (about 45 U.S. cents) for diesel fuel, can save the company Rp 2,010 (about 20 U.S. cents) per liter of fuel.

"We will save more by using LPG considering that we have to buy fuel at market prices," said Tonny.

PLN is also ready to fire up another power plant, comprising two units of 6 MW each, in Jambi on LPG to be provided by fields operated by PT Medco Energi Internasional.

"We're just waiting for the LPG to do the commissioning," said Tonny.

Indonesia produces between 3.5 million tons and 4 million tons of LPG a year, of which less than half is sold on the domestic market.