Indonesian gas disruption forces fuel switch

May 23, 2006
A disruption of gas supplies from BP Offshore North West Java (ONWJ) will force Indonesia's state-run power utility PT Perusahaan Listrik Negara (PLN) to buy diesel for its power plants.

Eric Watkins
Senior Correspondent

LOS ANGELES, May 23 -- A disruption of gas supplies from BP Offshore North West Java (ONWJ) will force Indonesia's state-run power utility PT Perusahaan Listrik Negara (PLN) to buy diesel for its power plants.

PLN Pres. Djuanda Nugraha Ibrahim said the company would have to spend $12.63 million in the next 2 weeks to buy 1,600 Kl. of diesel.

ONWJ reduced gas deliveries to PLN's combined-cycle power plants in Tanjung Priok and Muara Karang—both in North Jakarta—to 130 MMcfd from 260 MMcfd due to a leak in its gas transmission pipeline, which was reported to have been ruptured by a ship's anchor.

BP operates and holds a 46% interest in the large ONWJ concession, which has 670 production wells, 170 platforms, over 40 processing and service facilities, and 1,600 km of subsea pipelines. Partners include China's CNOOC 36.72%, Inpex 7.25%, and Itochu Oil Exploration 2.58%.

Contact Eric Watkins at [email protected].