Nusantara Regas, PLN to sign HoA with Total on LNG price

PT Nusantara Regas, a consortium of PT Pertamina and PT Perusahaan Gas Negara, is expected to sign a head of agreement with PT Perusahaan Listrik Negara (PLN) and Total Indonesie on the price of LNG for PLN, an industrial source said on Tuesday.

?The HoA will be signed at the end of this month,? the source told Petromindo.com.

Total will supply gas from its Mahakam block in East Kalimantan which will be turned into LNG at the Bontang LNG plan in the province. The LNG will then be shipped to a floating storage and regasification unit (FSRU) to be built by Nusantara Regas at the Jakarta Bay where the LNG will be turned into gas before being delivered through pipeline to PLN?s power plant in Jakarta or nearby areas.

?Total will sell the Mahakam gas 11 percent above the real export price (REP), which means if the oil price is at US$70 per barrel, the gas price will be sold at $7.5-7.8/bbutd,? the source, who is a member of the negotiating teams, said.

According to him, oil and gas upstream sector regulator BPMIGAS had agreed on the price formula.

Under the HoA, Total will supply 1.5 million tons per annum of LNG to the FSRU, he said. (Godang)