Indonesian State Saves Up to Rp95 Billion per Month with New Gas Supply Deal

Indonesian state-owned gas distributor firm PGN has started supplying gas to the thermal power plant PLTGU Tanjung Priok, potentially saving the state up to Rp95 billion per month. The development of this cooperation between PGN and Indonesia Power was swift, with a contract signed on September 18, 2009. The gas supply, which amounts to 30 million standard cubic feet per day, is expected to minimize fuel oil consumption and lower maintenance costs for the state.

Key Takeaways:

PGN, the Indonesian state-owned gas distributor firm, has begun supplying gas to PLTGU Tanjung Priok thermal power plant, potentially saving the state up to Rp95 billion per month.
The gas supply, which amounts to 30 million standard cubic feet per day, will minimize fuel oil consumption by up to 846,721 liters per day, reducing costs by Rp1.746 billion per day.
The state could save up to Rp1.15 trillion on fuel oil consumption and Rp175 billion on maintenance per annum as a result of this gas supply deal.
PT Indonesia Power, a subsidiary of PT PLN, has developed this cooperation with PGN rapidly, signing the contract in just one month.
The gas is distributed from a gas source in South Sumatra, and the deal is expected to benefit the state by reducing fuel oil prices and saving on maintenance.

Statistics:

Rp95 billion: the potential monthly savings for the state as a result of the gas supply deal.
846,721 liters: the reduction in fuel oil consumption per day due to the gas supply.
Rp1.746 billion: the daily cost savings from reducing fuel oil consumption.
Rp1.15 trillion: the potential annual savings on fuel oil consumption.
Rp175 billion: the potential annual savings on maintenance costs.
30 million standard cubic feet: the amount of gas supplied per day.
September 18, 2009: the date the contract between PGN and Indonesia Power was signed.

Sources:

Asia Pulse, Sept 29
ANGGERWIL - bl 29-09 1025