PGN TO PRIORITIZE GAS SUPPLY TO PLN'S POWER PLANTS

Jakarta, Sept 25 (ANTARA) - State-owned gas company PT PGN Tbk (PGN) will in 2009 give priority to meeting the gas needs of state electricity company PT PLN's power plants rather than those of industries, a spokesman said.
Speaking at a hearing with the House of Representatives (DPR)'s Commission VII here Thursday, PGN President Director Hendi P Santoso said gas supplies initially intended for industries would be diverted to PLN's power plants.
"We will give priority to supplying power plants," he said.
Under PGN's gas distribution program for 2009, a total of 200 million cubic feet per day (mmscfd) had been allocated to power plants, he said.
So far, PGN had signed contracts for gas supply to PLN power plants totalling 273.2 mmscfd which the following breakdown : 13.2 mmscfd to the Batam gas-fired power plant , 200 mmscfd to the Muara Tawar gas-thermal power plant , 30 mmscfd to the Tanjung Priok gas-thermal power plant and 30 mmscfd to the Cilegon gas-thermal power plant.
In addition, PGN would also supply 8 mmscfd of gas to the Talang Duku gas-thermal power plant and 100 mmscfd to the Muara Tawar gas-thermal power plant.
But Hendi also gave the assurance that gas supply to industries that had already signed contracts with PGN would not be reduced.
Currently, PGN gas supply to industries had reached 551 mmscfd and by the end of the year, the figure was expected to reach 600 mmscfd.