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Ministry to decide on gas allocation for electricity this week
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Kalimantan Jawa Gas (KJG) technical and operational director Cahyo Triyogo (right), KJG regional manager Imam Supardi (center) and a field worker inspect gas supply from the Kepodang gas well in the Java Sea, which is channeled to the Tambak Lorok onshore receiving facilities (ORF) in Semarang, Central Java. (JP/Wahyoe Boediwardhana)
The Energy and Mineral Resources Ministry will decide on the gas allocation level for electricity this week.
Energy and Mineral Resources Minister Ignasius Jonan said President Joko "Jokowi" Widodo had emphasized the need to increase electricity powered by gas in order to eventually wean the country off coal-fired power plants.
The minister said he had ordered his subordinates to finalize a draft on the gas allocation level for electricity.
"I have already issued an order on the gas allocation for gas-fired power plants," he said during the opening speech of the national gas forum held in Jakarta on Wednesday.
In PLN's latest electricity business procurement plan, electricity procured from gas will make up 26.6 percent of total energy sources for electricity.
PLN has been ordered to convert several gas-fired power plants to wellhead ones to cut down on distribution and transmission costs. It is hoped that these reduced costs will lead to lower electricity prices. (bbn)
