Jakarta (ANTARA News) - State electricity company PT PLN fails to save Rp1.6 billion per year because the gas supply exchange mechanism from Gajah Baru gas field in Natuna to Muara Tawar steam power plant (PLTGU) in Bekasi, West Java, has not run properly.

Consequently, PLN chief of fuel oil and gas division Suryadi Mardjoeki said here on Thursday that PLTGU Muara Tawar has to use fuel oil with a total cost of Rp1, 6 trillion per year.

Suryadi expected that the Gajah Baru swap mechanism could be distributed to the Muara Tawar power plant immediately to save the company`s operating costs.

According to Suryadi, the Gajah Baru gas swap was originally to be used to support the Muara Tawar power plant operations during its peak load with the at least 80 million cubic feet per day.

"However, there are only 20-30 MMSCFD available, making it less 50-60 MMSCFD. But if the Gajah Baru gas distributed optimally left only about 10-20 MMSCFD shortcomings," he said.

Meanwhile, Muara Tawar gas demand outside the peak load is 125 MMSCFD has been fulfilled.

The Muara Tawar power plant swap mechanism is not run due to the onshore receiving facilities (ORF) which was built by the state`s gas company, PT PGN Tbk, in Muara Bekasi is not finished yet.

The gas company is targeting the ORF capacity addition is completed in May 2013.

The swap contract is made based on the Energy and Mineral Resources Minister Jero Wacik`s decree which was signed on October 26, 2011.

The mechanism is conducted between Gajah Baru gas production, Natuna Sea Block A and Grissik Field, Corridor Block, South Sumatra.

Gajah Baru gas is operated by Premier Oil consisting US giant oil and gas company ConocoPhillips as buyer in Singapore, while the ConocoPhillips-owned Grisik production is piped by the state`s gas company to Muara Tawar steam power plant in Bekasi.

Through the mechanism the government will be relieved of the obligation to pay the Rp5 billion penalty per day, and gained additional state income of Rp5, 4 trillion per year, and the state`s electricity company`s (PT. PLN) operating cost savings valued Rp3 trillion.

With the swap mechanism runs only with Singapore, then the benefits gained is in the form of penalties and additional income exemption, while PLN saving advantages not happened.

Swap mechanism is a temporary effort until Gajah Baru gas permanently operate in Batam , because its supply to the area is still waiting for the piping completion.

The produce gas is planned to be supplied to the power plant with a capacity of 2x35 MW which is to be built in Batam by PT Medco Power.

(A050)

Editor: Ella Syafputri
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