Indonesia Power signs MoU to get gas supply from SSLNG

PT Indonesia Power (IP), a unit of state electricity firm PT Perusahaan Listrik Negara (PLN) signed on Friday a memorandum of understanding (MoU) to get liquefied natural gas (LNG) supply from PT South Sulawesi LNG (SS LNG).

?We sought the deal as we expect to operate our plants in Tanjung Priok, Tambak Lorok and Bali without having to use fuel for the sake of efficiency,? IP president director Tonny Agus Mulyantono said.

SSLNG was represented by COO chief Stewart Elliot. SSLNG plans to build and develope an LNG processing installation in Sengkang in Wajo regency.

Under the deal IP will receive between 1.5 million and 2 million tons annually for ten years contract. The first delivery will arrive in December, 2009, Tonny said.

Earlier report said that Australian firm Energy World Corporation (EWC) had repeatedly announced intention to build 4x500,000 tonnes of LNG plant in Sengkang PSC, South Sulawesi using existing gas reserves. The company has appointed Standard Chartered and Mizuho Bank as financial advisors for the project. It also has held talks with several LNG potential offtakers and has ordered components for the LNG plant.

But so far, Indonesian upstream watchdog BPMIGAS was not aware of EWC plan to build LNG plant in Sengkang PSC. (godang).