The Ministry of Energy and Mineral Resources offers four sources of gas to supply fuel for the Java 1 Steam Gas Power Plant (SGPP/PLTGU). Since early October, PT PLN (Persero) has asked the government to provide certainty for gas supply.
Director General of Oil and Gas, Ministry of Energy, I Gusti Nyoman Wiratmaja, said that the intended gas sources include the Tangguh Refinery in Bintuni Bay, West Papua, which is operated by BP Berau.
The Bontang refinery in East Kalimantan which is managed by PT Badak NGL, the Bangka Field in the Indonesia Deepwater Development project managed by Chevron Indonesia, and the Muara Bakau Block managed by ENI Muara Bakau BM.
Wiratmaja explained that the Ministry of Energy has not yet issued a decision. This is because the government and contractors have not agreed on the gas price to be given to PLN.
Head of PLN's Gas and Fuel Oil Division, Chairani Rachmatullah, confirmed that the Ministry of Energy had offered a source of gas. However, so far, there has been no definite commitment. PLN has actually secured a gas commitment from the Tangguh Refinery until 2033.
The company obtains 1.5 million metric tons of gas per year, and an additional 1.5 million tons will be added if the Tangguh III Refinery operates in 2020. Gas supply increases gradually from 12 cargoes per year from December 2016 to 44 cargoes per year in 2020.
Supply gas, will stop in 2033. The state-owned electricity company hopes that there will be gas certainty soon. This is because the auction for the generator developer has entered the final stage. The company stated that the consortium of PT Pertamina (Persero), Marubeni, and Sojitz won first place in the Java 1 PLTGU open auction.
The Pertamina consortium outperformed its competitors, namely the consortium of PT Adaro Energy Tbk-Sembawang Corporation and the consortium of Mitsubishi-PT Pembangkitan Jawa Bali-PT Rukun Rahardja Tbk. PLTGU Jawa 1 is designed to have a capacity of 1,600 megawatts.
PT PLN (Persero)
PLN's Procurement Director, Supangkat Iwan Santoso, said that PLN's gas needs reach 250 million standard cubic feet per day (MMSCFD) or around 16 LNG cargoes per year. In the future, Java 1 will become the largest gas generator in the 35 thousand MW program, with project value ranging from US $ 1.6-2 billion. If determined as the winner, Pertamina promised to manage the generator efficiently.
Pertamina spokesperson, Wianda Pusponegoro, said that the company is partnering with General Electric as a provider of the 9HA steam gas turbine. This technology is claimed to be the latest with a generation electrification ratio exceeding 61 percent, or above the ratio set by PLN. For construction matters, Pertamina invites Samsung C&T.
Koran Tempo, Page-17, Wednesday, Oct 19, 2016
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