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Arun gas to enter Belawan on March 4, PLN says

State-owned electricity firm PLN has said gas from the LNG storage and regasification terminal in Arun, Aceh, is scheduled to enter the Belawan steam and gas power plant (PLTGU) in Medan, North Sumatra, on March 4.

The firm’s fuel and gas division head, Suryadi Mardjoeki, said in Jakarta on Tuesday that the terminal operated by PT Perta Arun Gas, a subsidiary of PT Pertamina Gas (Pertagas), was still in the commissioning process.

“It is hoped that the gas supply will have entered the PLTGU in Belawan by March,” Suryadi said as quoted by Antara in Jakarta on Tuesday.

He added that the gas supply to the Belawan PLTGU from the Arun terminal was expected to reach 105 billion British thermal units (bbtud).

The gas would be channeled to Belawan via Arun-Belawan pipelines operated by Pertagas, the parent firm of Perta Arun Gas, he went on.

Suryadi said that with the supply of gas, PLN could significantly reduce the use of fuel, which would eventually lead to lower electricity subsidy costs, as every 1 bbtud was equal to the use of 28 kiloliters fuel per day.

“With the arrival of 105 bbtud of gas, we can reduce fuel costs of 2,940 kiloliters per day,” Suryadi said. With an assumed diesel price of Rp 5,000 (39 US cents) per liter, PLN could cut fuel costs by up to Rp 15 billion per day or Rp 5.4 trillion per year, he continued.

The Arun storage and regasification terminal is carrying out a commissioning process following the arrival of the first LNG cargo from the Tangguh plant operated by BP Berau Ltd in West Papua last week.

The LNG cargo transported by the tanker vessel Tangguh Towuti arrived at Blang Lancang Port in Nanggroe Aceh Darussalam last Thursday.

The first cargo is part of a delivery of nine Tangguh cargos to be bought by PLN in 2015.

Source : www.thejakartapost.com, Tuesday 24 February 2015