Medco asked to supply gas to North Sumatra power plant

State owned electricity company PLN has required PT Medco to provide a gas supply of about 60 million cubic feet per day (MMCFD) to cope with the gas shortage suffered by PLN?s power plants in North Sumatra, Bisnis Indonesia reported on Wednesday.

"We need about 60 MMCFD from Medco so that the gas supply could be increased to 100 MMCFD from 42 MMCFD at present," PLN?s director for power generation and prime energy Ali Herman Ibrahim said.

Herman said that the gas supply from Medco would be part of the two company?s cooperation agreement. In February, this year, Medco signed an agreement to sell its gas to PLN?s power plants in Tarakan and Indralaya, South Sumatra.

The gas will supplied by Medco?s subsidiary PT Exspan Nusantara at 2,40 billion British thermal unit (BBTU) per day for Tarakan and 8.02 BBTU per day for Indralaya. The price of the gas, according to the agreement, is set between US$2.15 and 2.17 per MMBTU. (*)