Gas Supply to North Sumatra Falls Short of Requirement

Medan, Feb 22 (Antara) - Acting governor of North Sumatra H Nurdin Lubis said gas supply in the province fell much short of requirement.

Under its contract with the state electricity company PLN, state-owned gas distributor Perusahaan Gas Negara (PGN) is to supply 40 million cubic feet of gas per day for North Sumatra, but realization is only 9 million cubic feet, Nurdin cited.

The deficit of 31 million cubic feet per day causes problem for PLN of North Sumatra to generate power, he told a public dialog on "solution to crisis in gas supply for local industries", held here on Thursday.

He said gas has been growing in importance as a source of energy to support economic development in North Sumatra.

He said altogether 200 million cubic feet of gas would be needed per day in North Sumatra for industries.

In a bid to meet the requirement, short term attempts have been taken such drilling of Benggala 1 well in the sub-district of Binjai of Langkat regency this month.

Order has been issued to accelerate the completion of the project including the installation of gas pipeline, Nurdin said.

He said there are also gas reserves found in Anggor and Sicanggang areas in the regency of Langkat with a potential reserve of 1.3 trillion cubic feet. Unfortunately, the contractor, a joint operation body (JOB) of Pertamina-Costa International Limited has failed to carry out its project, he said.

He said all gas reserves in North Sumatra need to be exploited to meet growing gas requirement in the province.

Attending the public dialog also included member of the National Energy Council Prof Rinaldy Dalimi, chairman of North Sumatra chamber of commerce and industry Ivan Iskandar Batubara, North Sumatra PGN General Manager Mugiono, and a number of other invitees. ***4*** (AS/A014)

(T.SYS/B/A. Saragih/A. Abdussalam) 22-02-2013 06:38:04