Nusantara to deliver third LNG cargo to PLN soon

By Alexander Ginting

PT Nusantara Regas, the owner of West Java FSRU which is stationed in Jakarta bay, said on Thursday the third cargo of LNG from Bontang LNG plant would arrive and be unloaded by the end of the week.

President Director Hendra Jaya told petromindo.com that the gas would be delivered to PTGU Muara Karang combined cycle power plant belonging to state owned utility firm PT Perusahaan Listrik Negara (PLN), despite the ongoing issue of unpaid claim for the first LNG cargo it delivered to PLN in May.

?The gas will be delivered to PLN, despite the current payment issue. We?d like to show our good faith to PLN,? Hendra said on the sidelines of an LNG seminar in Bali. The third shipment would carry 125,000 metric tons of LNG.

Nusantara has been delivering the gas since May, despite that no agreement has been reached on the price. Negotiations are still underway, Hendra said, but the gap of disagreement between the two parties is getting smaller. ?We expect to finalize the agreement soon.?

The price under negotiation is using the LNG FOB formula, plus an alpha factor which largely consists of freight cost, depreciation during the regasification process and margin.

Editing by Dadan Wijaksana