EMP signs $1.9 billion gas supply contracts

EMP Kangean Ltd, the operator of Kangean block offshore East Java, on Friday signed contracts worth US$1.9 billion with three state-owned companies PT PLN, PT Pertamina, PT PGN, and local gas distributor PT Indogas Kriya Dwiguna for the supplies of a total of 642.29 trillion British thermal units (TBTU) of natural gas.

Chairman of upstream authority BP Migas Kardaya Warnika said the contracts hopefully could meet an increasing demand for natural gas in East Java.

PLN?s deputy director Tonny Agus said earlier that PLN would use the natural gas to fuel the 1,500-megawatt (MW) Gresik, Grati (800MW), the proposed Pasuruan (500 MW) power plants, which are located in East Java.

EMP Kangean is wholly-owned subsidiary of publicly listed oil and gas firm PT Energi Mega Persada Tbk. (godang)

Seller	Buyer	Volume (TBTU)	Period (Year)	Price (US$)	Start
EMP Kangean, Ltd	Pertamina	220.83	10	2.8	2008
	PGN	8.18	2	2.8	Late 2005
	PLN	342.20	16	2.9	2008
	Indogas Kriya Dwiguna	71.08	10	2.9	2008