Conoco agrees on gas price for PLN's Batam plant
Friday, March 26 2004 - 01:48 AM WIB
The gas will be delivered to PLN Batam's power plant in Panaran, Batam Island.
General manager of PLN Batam, Ifyandri, said that the price agreement was subject to approval from BP Migas, the government’s agency in charge of the country’s oil and gas exploration and production activities.
The 2x27.5 MW Panarang power plant, which is now under construction, is expected to start operation in July this year. Conoco is expected to be able to supply gas of 15 million cubic feet per day (MMCFD) to the new power plant for 15 years soon after it starts operation.
The Rp 270 billion power plant is owned by PLN Batam, PT Menamas, and Medco Group.
PLN is also currently in talks with ConocoPhillips over gas supply deal for the former's other power plant projects.
Earlier this week, PLN had asked ConocoPhillips to lower the price of the gas it intends to sell to PLN’s Muara Tawar and Muara Karang power plants in West Java from the current level of US$2.67 per mmbtu.
PLN’s director for power generation and primary energy Ali Herman Ibrahim said in Jakarta on Wednesday that PLN and ConocoPhillips were still negotiating the ideal price of the gas to be supplied to the two power plants.
“ConocoPhillips’ offered price of US$2.67 per mmbtu is still too high. That’s why PLN has asked the American company to lower it,” he was quoted as saying by the daily. Herman said that the ideal price should be about US$2.65 per mmbtu. (*)