TEMPO.CO, Bandung - PT Pertamina Gas president director Hendra Jaya said that his company would supply gas for the gas-fueled power plant in the government's 35,000 Megawatt electricity project.

"We will supply the State Electricity Company (PLN). About a third of the power plants will be fueled by gas," Hendra said in Bandung on Friday, September 11, 2015.

Hendra explained Pertagas had prepared infrastructures to supply the Independent Power Producer (IPP) with gas.

"We will focus on gas-fueled power plants. PLN has opened tendering for the IPP for state-owned enterprises and private companies," he said.

Hendra revealed that one of the preparations made by Pertagas was extending its gas pipe up to 1,800 kilometers by 2019.

"The investment depends on the IPP. For consideration, building 350 kilometers gas pipe will cost US$400 million," he said.

Currently, Pertagas has 1,600 kilometers gas pipe and is planning to extend it by 500 kilometers this year. Pertagas also built LNG terminals, including a number of floating LNG terminals to store gas before being distributed to power plants.

Hendra said that the Government must be able to motivate gas field operators to produce gas with affordable price and adequate economic value. According to Hendra, three factors affecting the gas price were the price at the upstream level, the toll fee for pipe utilization and the margin.

AHMAD FIKRI