Senoko to boost RI gas imports

Senoko to boost RI gas imports

SINGAPORE: Senoko Power Ltd., the biggest power producer in Singapore, said it will boost its natural gas consumption more than half in August when it imports the fuel via pipeline from Indonesia to fire its power plants.

The utility will import 85 million standard cubic feet of gas a day from Indonesia's Sumatra island, boosting its daily consumption by 57 percent from 150 million standard cubic feet. Senoko currently buys all its gas from Malaysia, said Lim Ju Tong, vice-president of the production division at Senoko.

The power producer, which generates 30 percent of the electricity in Singapore, is using more gas to fire its power plants to reduce its costs. Natural gas accounts for 60 percent of Senoko's generation capacity of 2,670 megawatts. The rest is powered by fuel oil.

Senoko will increase its gas purchases from Indonesia to as much as 235 million standard cubic feet a day in 2008, when Senoko's contract to purchase gas from Malaysia will expire, Lim said. He declined to say when negotiations for a new contract will begin.

Senoko is owned by Temasek Holdings Pte., a Singapore- government investment arm. -- Bloomberg