Gas price for PLTGU Jawa-1 agreed
Wednesday, May 3 2017 - 02:16 AM WIB
Petromindo|Khalsa
A consortium assigned to develop the 1,760 MW PLTGU Jawa-1 gas and coal-fired power plant has reached agreement over the price of the required gas with BP Indonesia, the operator of the Tangguh LNG plant in West Papua Province.
?A deal (for the gas price) has been reached, only waiting for the signing (of the gas sale and purchase agreement),? said Supangkat Iwan Santoso, Director of Procurement at state-owned electricity firm PT PLN on Tuesday.
He said that the consortium obtained the lowest price of gas at 11.2 percent of Indonesia Crude Price (ICP) plus US$0.4 per mmbtu for transportation cost, in line with the Minister of Energy and Mineral Regulation No 11/2017, which caps gas price for power plant at 11.5 percent of ICP.
In comparison, PT Nusantara Regas offered gas price of 11.25 percent of ICP plus $0.7 per mmbtu for transportation.
As has been previously reported, the Ministry of Energy and Mineral Resources has approved the allocation of 14-20 cargoes of LNG per year from the Tangguh plant for the PLTGU Jawa-1 project for a period of 15 years.
A consortium of state-owned oil and gas firm PT Pertamina, Marubeni Corporation, and Sojitz Corporation in January of this year won tender for the development of the PLGTU Jawa-1 project. The consortium has signed the power purchase agreement with PT PLN.
Editing by Reiner Simanjuntak