Exspan delays signing of gas supply agreements to January

Oil and gas producer PT Exspan Nusantara will sign gas supply agreements with state-owned steel-maker PT Krakatau Steel and state oil and gas firm PT Pertamina on Jan 16, 2004, an Exspan official told Petromindo.Com Wednesday.

The accord signing had initially been planned for December 30, 2003.

?The agreements will be signed on January 16,? said Pudyo Suwarno, Exspan?s vice president for marketing.

Under its heads of agreement with Krakatau Steel, Exspan will supply 100 million cubic feet per day (MMCFD) of gas from South Sumatra to Krakatau?s steel plant in Cilegon, Banten. The gas price is valued at US$2.5 per MMBTU.

Meanwhile, Exspan will supply to Pertamina 150 tons of liquefied petroleum gas (LPG) per day from its South Sumatra LPG plant, under a 5-year sales and purchase contract.

On Wednesday, Exspan and state electricity firm PLN signed an agreement to supply 18 MMCFD of gas to the latter?s power plants in South Sumatra, under a 8-year contract starting from 2005.

Exspan is a subsidiary of JSX-listed oil producer PT Medco Energi International. (Godang)