Exspan to sign gas supply deals end-December

Oil and gas producer PT Exspan Nusantara will sign three gas supply agreements on December 30, company vice president Pudyo Suwarno said Monday.

On that day, Exspan will sign a gas sales and purchase agreement (SPA) with state power company PLN supply 13 million cubic feet per day (MMCFD) of gas from its South Sumatra fields to PLN?s gas fired power plant in Borang, also in the province, under a 10-year contract. The gas is priced at US$2.55 per MBTU, Pudyo said.

Exspan will sign another SPA to sell 150 tons of liquefied petroleum gas (LPG) per day from its South Sumatra LPG plant with state oil and gas firm Pertamina under a 5-year contract.

The third deal to be signed on Dec. 30 will be the heads of agreement between Exspan and state-owned Krakatau Steel. Under the agreement, Exspan will supply 100 MMCFD of gas from South Sumatra to Krakatau?s steel plant in Cilegon, Banten. The gas is valued at $2.5 per MMBTU.

Gas to the Cilegon steel plant will be transmitted via South Sumatra-West Java pipeline planned to be built in 2005 in by state gas transmission and distribution firm PGN. PGN will transmit gas to the plant from 2015 until 2017.

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