| PLN open tendering gas & fuel |
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| Tuesday, 06 April 2010 10:15 | |||||||
Page 1 of 2 Generator fuel supply contracts between 3 and 10 years
JAKARTA: State electricity company PT (Persero) will open a tender for the procurement of fuel for petroleum and gas plant in the middle of this month in anticipation of demand surge. Primary Energy Director of PLN revealed Nur Pamudji fuel producers such as PT Pertamina, Shell Indonesia, and PT Aneka Kimia Raya Corporindo opportunity to be suppliers of PLN's power plants. However, this provision does not rule out the possibility of other oil producers from within and abroad. "The need for power plant fuel is only supplied by Pertamina, Shell, and AKR. Manufacturer of fuel, both within and outside the country are interested in becoming a supplier, please list the PLN. The volume of supply of at least 1 million kiloliters," he said yesterday. According to him, the volume and location of the plant which would require fuel to be announced at the time of the procurement auction was held, mid this month. "Figures for the exact volume of fuel that will be auctioned will be met when the auction was held, which is 2 weeks away. What is clear, the point at several power supplies in all locations, so the supply of not less than 1 million KL. Since March 1, 2010, PLN was forced to burn fuel which cost four times more expensive than using gas because the supply of only 100 BBTUD PGN and only able to operate one of the four existing blocks. The effect, until the end of PLN had to use approximately 618,000 KL of fuel that require additional costs amounting to Rp2, 4 trillion. Section, the use of fuel that resulted in a swelling of the PLN's production cost. When compared with the average cost of the fuel gas in 2009 amounted to Rp318/kWh, the use of fuel cost that is much larger Rp1.383 / kWh. According to Nur, state-owned electricity was hoping to get the fuel supply in the second half of this year long with the supply contract for 3 to 10 years. "Petrol auction process was only 3 months so that the second half of this year could enter. Fulfillment of fuel is far more urgent to close the plant gas supply shortage," said Nur. Muara Tawar Nur explained further gas tenders Muara Tawar Combined Cycle Power Plant, Bekasi opened with a minimum amount of 200 BBTUD. Tender held in mid of this month with the hope at the end of 2010 was no certainty the winner. "Since the beginning of March 2010, PLN was forced to burn a fuel because gas supplies from PGN only 100 BBTUD. Not infrequently, the supply is less than 100 BBTUD. We estimate the allocation of domestic gas for generating electricity becomes uncertain, so we opened the tender for the supply of gas." PLN, he said, hoping the gas supply can be realized at the latest mid-2012. According to him, the main requirements are the winning bidder must be a producer of gas and willing to build gas infrastructure to the Muara Tawar power plant. In addition, the contract of gas supply to PLN for a period of 10 years. "PLN will not make new investments to these [gas supply] and only buy gas only. It's up to manufacturers how to memasoknya to the existing plant. What is clear, there is a domestic gas producers expressed interest," said Nur was reluctant to mention his name. Related on price, according to him, the price of gas to be purchased electricity SOEs would be formed at the time of the tender took place. According to him, the necessary amount of gas plants during 2010 reached 2432 BBTUD, while the supply of available new BBTUD 1471. PLN needs the gas supply is expected to increase to 2516 BBTUD in 2011. However, assurance of supply of gas is estimated that only 1401 BBTUD. Nur said the gas shortage that occurs naturally due to reduced ability of the production of some wells.
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