INDONESIA: PLN, PETRONAS SIGN GAS SALES CONTRACT
Last Updated: 2012-07-02
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JAKARTA, July 2 (NNN-ANTARA) -- Indonesia state-owned electricity company PT Perusahaan Listrik Negara (PLN) has signed a 12-year contract with Malaysia's Petronas Carigali for the purchase of gas from the Kepodang field off the northern coast of Central Java.

PLN President Director Nur Pamudji and Petronas Carigali General Manager for Indonesia Operations Zainal Anuar B Abdullah signed the agreement here on Friday, in the presence of Head of the Upstream Oil and Gas Executive Agency (BP Migas) R Priyono.

The gas from the Kepodang field will be supplied to Tambak Lorok thermal power plant in Semarang, capital of Central Java province, starting in 2014.

"The 12-year contract will expire at the end of December 2026," Nur Pamudji said.

PLN has suspended the Tambak Lorok power plant which previously used fuel oil until it received gas supply from Kepodang field.

Under the contract, Petronas will supply 116 million metric standard cubic feet per day (mmscfd) of gas to the power plant, with a maximum supply of 121 mmscfd.

The contract also sets the gas price at US$4.61 per million British thermal unit (mmbtu) with an an escalation of 8.6 percent per year. -- NNN-ANTARA