Medco hopes to sign gas sales agreements with PLN, PIM soon
Monday, May 20 2013 - 01:55 AM WIB
PT Medco E&P Indonesia, a subsidiary of IDX-listed energy concern PT Medco Energi Internasional, is in the process of completing two gas sales agreements with state-owned electricity firm PT Perusahaan Listrik Negara (PLN) for gas from the Simenggaris field in East Kalimantan, and with fertilizer company PT Pupuk Iskandar Muda (PIM) for gas from the Matang field in East Aceh, Aceh province.
?We?re (in the process of) completing gas sales agreements with PLN and PIM. Hopefully it can be done soon,? Medco EP Indonesia Corporate Secretary Imron Ghazali told Petromindo.com Monday.
Imron said the company has reached an agreement with PIM over the selling price of the gas, but declined to disclose it. The company, however, has yet to reach an agreement with PLN. ?We hope to finalize it soon. We have requested for a price of US$7.3 per mmbtu,? he said.
Elsewhere, Imron said that his company has completed negotiation with PT PT Panca Amara Utama (PAU) for gas from Donggi Senoro LNG project in Central Sulawesi.
?For the deal with PAU, they have agreed for the gas price to follow the international price index of ammonia. It?s estimated that the price of ammonia in December 2012 was about $700 per ton. It it?s translated to gas price, it would be about $8 per mmbtu,? Imron said.
Editing by Reiner Simanjuntak