Gas for Simenggaris mini LNG project priced at $7.33

By Godang Sitompul

Negotiation on the gas sales agreement on gas supply from the JOB of PT Pertamina Hulu Energi (PHE)-PT Medco EP Simenggaris to the planned Simenggaris mini LNG project in Nunukan, East Kalimantan, is nearing completion.

"Even the price has been agreed to. We're now still discussing several terms," PT Pertamina SVP for Gas dan Power Affairs, Salis Aprilian told petromindo.com.

Pertamina is the parent company of PHE, which together with Medco will supply the gas, and PT Pertagas which along with PT Perusahaan Listrik Negara (PLN) -- through joint venture PT Perta Daya Gas -- will develop the mini LNG project.

Separately, PLN Head of Oil and Gas Fuel Division Suryadi Mardjoeki told petromindo.com that the price has been set at USD$7.33 per mmbtu flat for a duration of 11 years.

Perta Daya Gas has said that it is currently making preparations to hold tender in the fourth quarter of this year for FEED works for the mini LNG project in Nunukan.

The mini LNG facility is scheduled to be on stream in 2015.

Editing by Dadan Wijaksana