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tate-owned oil and gas firm PT Pertamina on Friday inaugurated a central processing plant (CPP) for gas from Gundih block, however, due to pipeline issues, the plant will not receive any gas this year.

Suryadi Mardjoeki, head of state owned PT Perusahaan Listrik Negara'€™s (PLN) fuel and gas division, which owns the steam power plant (PLTGU), explained that gas delivery to the PLTGU Tambak Lorok, Semarang, Central Java was delayed.

'€œThe target of gas delivery from Pertamina is Dec. 22. However, I think it may be delayed until January as the pipeline development has not been finished yet. About 3 percent of the work remains,'€ Suryadi said over the telephone.

Moreover, he added, the gas delivery would be only 10 million standard cubic feet per day (mmscfd) during the first stage. Delivery will be increased gradually and the power plant will only receive the full 50 mmscfd by February or March, according to Suryadi.

The plan is to receive gas from the block in a contract that will last 12 years.

'€œThe delivery will result in energy efficiency of about Rp 21.4 trillion [US$1.76 billion]. The conversion of HSD [high speed diesel] to gas will also reduce CO2 by 800 tons a day,'€ Pertamina EP, a subsidiary of Pertamina that is running the project, said in a written statement.

The CPP development began in July 2011. A consortium consisting of PT Inti Karya Persada Teknik and PT Adhi Karya carried out the project in a contract worth $120 million.

PLTGU Tambak Lorok was initially scheduled to receive gas and end its idle state last July. The power plant, which has a capacity of 1,000 megawatts, was shut down in 2011 as PLN considered the use of diesel to produce electricity as too expensive.

Suryadi said that with 10 mmscfd, as much as 40 megawatts could be produced. However, if the company used compressed natural gas (CNG), the electricity produced could be as much as 160 megawatts.

He added that the operation of PLTGU Tambak Lorok would strengthen PLN'€™s operations in Central Java and help it deliver electricity to West Java.

'€œFor now, we need the plant to maintain voltage and exhibit no decline in electricity transfer to West Java. We need an additional 1,000 megawatts every year to support transfer to West Java,'€ Suryadi added.

PLTGU Tambak Lorok needs 160 mmscfd of gas to be fully operational. Besides gas supply from Gundih block, the plant is scheduled to receive delivery of 116 mmscfd from Kepodang field in Semarang.

Supply from Kepodang gas field, which is at the Muriah block off Central Java, is scheduled to begin in October next year. Meanwhile, the development of gas pipelines, which will transfer the gas from the field to the Tambak Lorok power plant, is scheduled for completion by the middle of 2015.