PT PLN (Persero) will convert 52 power plants that use fuel (BBM) to gas. Minister of Energy and Mineral Resources (ESDM) Decree which is the basis for conversion has been signed by Minister of Energy and Mineral Resources Arifin Tasrif.
The decree gave an assignment in the provision of liquefied natural gas (LNG) to convert power plants that previously used BBM. The decree was contained in the Decree of the Minister of Energy and Mineral Resources No.13 / 2020 concerning the Assignment of the Implementation of the Supply and Development of LNG Infrastructure, as well as the Conversion of the Use of BBM with LNG in the Provision of Electrical Power.
There are 6 points signed by the Minister, including:
Assign PT Pertamina (Persero) to carry out the supply and development of LNG infrastructure in the supply of electricity by PT PLN (Persero), at each power plant as stated in the appendix which is an inseparable part of this Decree.
Assign PT PLN Negara (Persero) to carry out gas power generation activities and purchase of LNG from PT Pertamina (Persero) in the context of converting the use of High Speed Diesel Fuel Oil to LNG.
In the context of accelerating the completion of the construction of the LNG infrastructure as referred to in the KESATU Dictum, PT Pertamina (Persero) may appoint a subsidiary or affiliation that has experience in planning and infrastructure development for LNG reception, storage and regasification.
PT Pertamina (Persero) is required to:
Providing gas regasification gas basil gas prices at the plant gate that will result in Lower Cost of Electric Power Supply compared to using High Speed Diesel Fuel Oil
Providing LNG regasification gas produced at the plant gate in volume as stated in the Appendix which is an integral part of this Ministerial Decree.
Submit regular reports on the progress of the completion of the LNG infrastructure. as referred to in the THIRD Dictum every 6 months to the Minister of Energy and Mineral Resources through the Director General of Oil and Gas with a copy to the Director General of Electricity
The assignment of LNG infrastructure development as referred to in the FIRST Dictum and the assignment to carry out the power plant gasification activities as referred to in the SECOND Dictum, is completed within no later than 2 years after this Ministerial Decree is established.
In the event of a change in the completion target, the power plant, the volume of LNG needs is agreed between PT Pertamina (Persero) and PT PLN (Persero) and reported to the Minister for approval.
Deputy Director of PLN, Darmawan Prasodjo said the conversion was to reduce costs because fuel consumption was more expensive than gas. Darmawan explained the use of fuel costs incurred at US $ 20 per MMBTU, after being converted the price will drop to around US $ 12-14 MMBTU.