Jangkrik LNG cargo finally unloaded in Bali
Friday, July 7 2017 - 08:58 AM WIB
PT.Indonesia Power, a unit of state electricity firm PT PLN (Persero) that runs 200MW Pesanggaran power plant in Bali, has finally agreed to offtake one small LNG cargo it previously rejected because it demanded lower price for the cargo.
Indonesia Power Director Eri Prabowo said that the company has received gas from Floating Regasification Unit (FRU) operated by PT. Pelindo Energi Logistik (PEL).
?Price negotiation, however, has not yet been settled, but it seems now we will pay below US$10 per mmbtu,? Eri said.
PLN has demanded PEL and IDX-listed firm PT Humpuss Intermoda Tbk which transport the LNG from Bontang to PEL to cut price by 30 percent from $12 per mmbtu they previously agreed, arguing that midstream cost of transporting and regasifying the gas was too high. The price dispute caused mini-LNG vessel Eka Putra unable to unload the 22,500m3 LNG cargo to PEL?s FRU. PLN has threatened to burn liquid fuel for Pesanggaran if the demand is not fulfilled.
The 22,500 cubic meters LNG cargo transported by Triputra is the first LNG cargo from Jangkrik field operated by Italian firm Eni SpA processed at Bontang LNG plant. The spot cargo was bought by Pertamina, which has contract to supply 6 small cargoes to PEL in six months, Pertamina LNG Marketing VP Didik Sasongko Widi said earlier.
PEL in turn is contracted to supply 40 mmscfd of gas Pesanggaran. PEL has appointed Humpuss to transport LNG from Bontang to the Benoa LNG terminal under a seven-year contract.
Editing by Alexander Ginting