State-owned electricity distributor Perusahaan Listrik Negara has set aside Rp 1.4 trillion ($116 million) to construct a series of compressed natural gas facilities in Gresik, East Java and Lombok, West Nusa Tenggara this year to supply gas for power plants in Lombok.
Wiluyo Koesdwiharto, general manager at PLN’s VIII development unit, told Investor Daily on Thursday that the company would use the money to build CNG station plants in Gresik and Lombok and to purchase vessels that would distribute CNG from Gresik to Lombok. He did not provide specific details on the amount of cash for each facility.
The gas produced from the CNG facility in Gresik will be used to supply power plants in Lombok that have been using fuel oil. The company expects the gas supply from the CNG facility in Gresik to provide electricity in the area for five hours each day over a four-day period.