BPMIGAS finalizing talks on Donggi-Senoro gas price for Pancara Amar

The upstream oil and gas regulator BPMIGAS said it will soon finalize the negotiation on the price of gas to be delivered to PT Pancara Amar Utama (PAU), Sulawesi, which will build fertilizer plants in the area .

?We have offered attractive price scenario for PAU, that is a floor price of US$4 per BBTUD and ceiling price of US$5 per BBTUD, with a possibility of 3 percent increase if the price of ammonia gas is above $500 per ton,? Deputy Chairman for Operation of BPMIGAS, Rudi Rubiandini told Petromindo.com.

Rudi hopes the negotiation will be finalized by the end of this year. PAU is expected to receive the gas supply in 2015.

PAU is among potential buyers of the Donggi-Senoro LNG. The other domestic buyers interested to purchase gas from the project are PT Pupuk Sriwijaya and state electricity company PT PLN.

The Donggi-Senoro LNG project is operated by PT Donggi Senoro LNG (DSLNG), which is a joint venture between Mitsubishi Corporation (51 percent), Pertamina Energy Services Pte. Ltd. (PES) (29 percent), and PT. Medco LNG Indonesia (MLI) (20 percent). PES is a subsidiary of Indonesia?s state-owned oil and gas company, PT. Pertamina (Persero), and MLI is a wholly owned company of oil, gas energy firm PT Medco Energi International Tbk. (godang)