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tate-owned electricity company PT Perusahaan Listrik Negara (PLN) announced this month it will receive 130 million standard cubic feet per day (mmscfd) of gas from the Terang Sirasun Batur field in Madura, East Java.

The field is operated by Kangean Energy Indonesia Limited, and partly owned by PT Energi Mega Persada (ENRG), and is a unit of the Bakrie Group empire.

PLN’s division head for oil-based fuels and gas, Suryadi Mardjoeki, said that the gas would be channeled to the Gresik gas-fired power plant in East Java.

“With the gas from Terang Sirasun Batur we hope that the Gresik power plant won’t continue to burn any more oil-based fuels,” he said on Monday.

The plant required 235 mmscfd of gas to operate at full capacity, but prior to the arrival of gas from Terang Sirasun Batur, it only received 100 mmscfd from the West Madura offshore block and 30 mmscfd from the Pangkah block, Suryadi said.

He said that the gas entered Gresik on May 26, a day earlier than scheduled. During the commissioning phase, the amount of gas delivered was 80 mmscfd, while starting from June, 130 mmscfd would be channeled to the plant.

“That amount of gas [130 mmscfd] will cut the utilization of 3,900 kiloliters of oil-based fuels per day,” Suryadi revealed.

Energi Mega Persada CEO Imam Agustino said that gas production at the Terang Sirasun Batur field would gradually reach a full capacity of 300 million cubic feet gas per day in less than a month.

The total output of around 300 million cubic feet gas per day has been fully contracted at the price of US$5.15 per mmbtu to PLN, Pertagas and Indogas, as well as $4.93 to Petrokimia Gresik.

“This additional output will have a positive impact on our company’s cashflow going forward,” Imam said in a press statement.

Energi Mega Persada’s 50 percent stake in the Kangean PSC was translated into proven and probable reserves of 2.6 million barrels of oil and 677 billion cubic feet of gas as at Dec. 31, 2011.

Meanwhile, PLN has also received between 30 and 50 mmscfd of additional gas supply from the West Java floating storage and re-gasification unit (FSRU) since Friday last week. The supply will be gradually increased to around 140 mmscfd.

The company has also signed an agreement with BP, operator of the Tangguh liquefied natural gas (LNG) plant in Papua, for 230 mmscfd of LNG allocation.

The gas would most likely be stored at the planned LNG receiving terminal in Arun, Aceh. However, the agreement said that the gas could be used anywhere as needed.

“We hope to receive additional gas supplies [to replace oil-based fuels] because it helps the government reduce the electricity subsidy,” Suryadi said.

To improve operational efficiency, PLN aims to limit the utilization of oil-based fuels at 7.5 million kiloliters. As of April, the realization was 2.8 million kiloliters or 37.3 percent from the company’s target.

During the period, 60.4 percent of primary energy used to generate electricity came from coal, followed by 21.7 percent from natural gas, 6.3 percent from geothermal, 5.1 percent from hydro and 6.5 percent from oil-based fuels.

Currently, in Java, only Central Java no longer uses oil-based fuels. The Tambaklorok power plant, which previously burned oil has been shut down until gas supplies from the Kepodang and Gundih fields are delivered.