EMP, Medco to sign gas agreements end of June

Oil and gas upstream authority BPMIGAS said Thursday two gas producers, PT Energi Mega Persada (EMP) and PT Medco Energi Internasional, would sign several natural gas supply agreements with its customers end of this month.

BPMIGAS chairman Kardaya Warnika said EMP, the operator of Kangean block in East Java, would sign two gas sales agreements with state-owned electricity firm PT PLN for gas supply to the latter?s Grati and Gresik power plants, which are located in the same province.

On the same occasion, EMP will also sign two similar agreements each with state-owned firms PT Petrokimia Gresik and PT PGN, Kardaya said.

Kardaya, however, did not give further details about the volume of the contracts.

Aside from the gas supply accords, EMP will sign a transportation agreement with state-owned oil and gas firm PT Pertamina for the utilization of the East Java Gas Pipeline.

According to Kardaya, this agreement will enable EMP to continue using the pipeline to deliver its natural gas to buyers in East Java's mainland following the extension of the Kangean block contract.

On the same occasion, MedcoEnergi and PLN will sign a gas sales agreement, as a follow-up to the heads of agreement signed by both parties last week. The agreement pertains to the supply of 90 billion cubic feet of natural gas from Lematang block in South Sumatra to PLN?s Keramasan power plant in Palembang. (godang)