CNOOC starts supplying gas to Cilegon power plant

CNOOC SES Ltd, the operator of Offshore Southeast Sumatra PSC (SES), announced Tuesday it had commenced delivering natural gas to the 750-megawatt Cilegon combined-cycle power plant in West Java through an 85-km sub-sea pipeline.

CNOOC said in a statement that it would supply gas to the power plant from the Zelda and Banuwati areas of the PSC at the rate of around 50 billion British thermal units (BTU) per day in the first year and up to 80 billion BTU per day thereafter.

The power plant is operated by state-owned electricity PT PLN. According to CNOOC, the gas project was developed to support PLN in increasing the electricity capacity to meet power demand for Java - Bali area, especially for West Java.

CNOOC and PLN signed Gas Sales Agreement for the natural gas supply late 2004. The gas contract is valid until 2018.

Other participating interests in the PSC are Inpex, KNOC, Orchard Energy, Fortuna Resources and Talisman Resources. (godang)