Nusantara Regas expects signing of LNG SPA by end January

By Edi Junaedi

PT Nusantara Regas said it is finalizing the negotiation regarding the gas supply from Mahakam block for its Floating Storage & Regasification Unit (FSRU) in West Java and expects to sign the sales purchase agreement (SPA) later this month.

?The target is to sign the LNG sales purchase agreement by the end of January. There are no more outstanding issues, everything has been agreed to,? Nusantara Regas President Director Hendra Jaya told petromindo.com

Hendra said the company is waiting for approval from the upstream authority BPMIGAS. He however refused to mention the price. ?We cannot mention the price as it is part of the agreement.?

The contractors of the Mahakam block Total Indonesie and Inpex Corporation will turn the gas into LNG at the Bontang LNG plant in East Kalimantan and ship the LNG to the FSRU, where the LNG will be turned back into gas before being delivered to the power plants owned by PLN in West Java.

Editing by Dadan Wijaksana