BPH Migas to announce SSWJ toll fee next week

Thursday, July 5 2007 - 01:42 AM WIB

Downstream oil and gas regulating body BPH Migas would announce the fee that state gas distributor PT PGN will get for the transmission of gas through its South Sumatra to West Java (SSWJ) pipeline next week.

 

“We would set the toll fee on the basis of data from PGN," Trijono, a member of BPH Migas Committee said after meeting with PGN and state owned electricity firm PT PLN in Jakarta on Wednesday.

 

PGN would submit data about its financing and the feasibility of the SSWJ project to BPH Migas next week, he went on.

 

Earlier, PGN has reached an agreement with PLN on the price of gas supplies for the latter’s power plant in Muara Tawar, West Java .

 

Under the agreement, PLN will pay US$4.5 per million British thermal unit (MMBTU) for gas supplies pipelined by PGN from American firm ConocoPhillips’ Suban gas field of the Corridor block in South Sumatra. PGN acts as a buyer of the gas and resells it to PLN.

 

Aside from ConocoPhillips, PLN will also get supplies from other gas producers in South Sumatra, including state owned oil and gas company PT Pertamina. The gas will also be supplied through PGN's SSWJ pipeline. PLN and PGN however have yet to agree on the toll fee payable by PLN to PGN. (Godang)

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