Hess on schedule to supply gas to PLN

U.S oil and gas firm Hess Corp. will start to supply 100 million standard cubic feet of gas per day (MMSCFD) to combined cycle power plant (PLTGU) Gresik, East Java, this month.

 

Head of Oil and Gas Regulating Body, BPMIGAS, Kardaya Warnika said in Jakarta on Monday that Hess is in the course of commissioning at present and scheduled to come on stream later this month.

 

PLTGU Gresik belongs to state electricity firm PT PLN and has a generating capacity of 2,200 MW.

 

Under gas sales agreement (GSA) for the Pangkah PSC, signed in December 2004, Hess will provide a total of 440 billion cubic feet of natural gas over a 20-year period at a selling price of US$2.38 per million british thermal unit (MMBTU) to PLN at a plateau rate of 100 million cubic feet per day (gross).

 

BPMIGAS’ deputy chairman for operational affairs Dody Hidayat predicted that the company could supply up to 130 mmscfd. Some 100 mmscfd will be used by PLN while the remainder has been allocated to Petrokimia Gresik and other industries in the region.

 

Contract between PT PLN and Hess has come into force since two years ago. “We plan to ask for additional gas in phases,” said Tony Agus Mulyantono, PLN’s deputy director for primary energy as quoted by Kontan daily.

 

Hess has 75 percent interest in Pangkah PSC, with the balance held by ConocoPhillips (godang)