Kodeco signs US$120 million gas deal with Petrokimia
Thursday, January 4 2007 - 09:11 AM WIB
Edi Purwanto, deputy for financial and economic affairs at oil and gas upstream authority BP Migas told Petromindo.Com that Kodeco will deliver natural gas to Petrokimia?s plant in Gresik, East Java from its gas field offshore East Java mainland until 2011.
?The gas supplies will be delivered starting tomorrow (Friday). The gas costs at $3.6 million British thermal unit,? Edi said.
Kodeco will supply the fertilizer firm with a total volume of 26.3 trillion British thermal unit (TBTU) throughout the contract period. Annual volume will reach 7 billion British thermal unit (BBTU) and increase to 20 BBTU.
Petrokimia has forced to suspend its operation for than a month due to stoppage of gas supplies following the explosion of the East Java Gas Pipeline owned by state oil and gas company PT Pertamina. The pipeline is used to transmit gas from gas fields off the coast of East Java to the province?s mainland.
On January 1, the fertilizer firm started receiving some gas supplies again from state owned gas distribution firm PT Perusahaan Gas Negara. But, the supply which is at the rate of 15 million cubic feet per day (MMCFD) is only enough to run its power generator.
Petrokimia needs at least 49 MMCFD of natural gas in order to resume production. (Godang)