PLN to boost gas conversion

Fri, 09/19/2008 11:54 AM  |  The Archipelago

PALEMBANG, S. Sumatra: State electricity company PT PLN on Tuesday said it would expedite the move from diesel to gas to improve the firm's performance by 2011.

PLN president director Fahmi Mochtar said gas would be used to fuel the Indralaya power plant in Ogan Ilir regency and the Borang power plant in Banyuasin regency.

"This way, we can cut operational costs by Rp 2 billion (US$212,000) annually," he said.

"Similar steps will also be implemented at other power plants, including Muara Tawar."

Fahmi added PLN would cease using high-speed diesel and adopt marine diesel instead.

"We still face problems, including transmission losses, so blackouts in a number of regions are inevitable," he said.

"We are trying to improve our services, but we are still in the red. PLN is continuing with its efficiency efforts."

Nationally, Fahmi said, PLN would need some Rp 62.4 trillion to plug its budget. If the price of crude oil reached $120 per barrel, PLN would need an Rp 88 trillion subsidy. -- JP

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