Contractors sign US$1.4 billion gas contracts

Several oil and gas companies signed on Tuesday gas sales and purchase contracts worth US$1.4 billion in Jakarta.

The first agreement was signed by Petronas Carigali Muria Limited and state electricity firm PT PLN. Under the deal, Petronas will supply PLN?s power plant in Tambak Lorok, Central Java with 145 billion British thermal unit (BBTU) natural gas per day for 10 years starting from 2008. A total of 2.78 million British thermal unit of gas worth $984 million will be delivered to the Tambak Lorok power plant.

The second agreement was signed by Kalila (Bentu) Ltd and PLN. Under the deal, Kalila will supply PLN?s power plant in Pekanbaru, Riau with 15 BBTU of gas for 15 years starting in the third quarter of this year, or a total of 2.73 million British thermal unit, valued at $398 million, throughout the contract period.

The third agreement was signed by PetroChina and pulp and paper company PT Henrison Iriana in Papua, under which the former will supply natural gas worth $1.8 mllion to the latter.

Also during the occasion, Amerada Hess-Pertamina Jambi Merang JOB signed a memorandum of understanding with state gas firm PT PGN for the supply of natural gas for industrial buyers in South Sumatra. (Alex)