PEL, IP finally reach agreement on gas price for Bali power plant
Tuesday, August 15 2017 - 04:31 AM WIB
Petromindo|Lucky
PT Pelindo Energi Logistik (PEL), which operates a mini LNG terminal in Benoa, Bali, has finally reached agreement with power company PT Indonesia Power (IP) over price of gas for the latter?s Pesanggaran 200 MW diesel and gas-fired power plant (PLDG), also located in Bali.
Gembong Primadjaja, President Director of PEL, said on Tuesday that the company has agreed to lower its LNG regasification fee, but declined to disclose the figure. PEL is a subsidiary of state-owned port management firm PT Pelindo III.
Meanwhile, a senior official at IP, who requested for anonymity said that PEL has lowered the fee from US$5.4 per mmbtu to $3.8.
As has been previously reported, IP, a subsidiary of state-owned oil and gas firm PT PLN, refused late in June to receive one small cargo of LNG to be processed by PEL, demanding the latter to cut price by 30 percent.
The refusal caused LNG vessel Triputra, which is owned by IDX-listed shipping firm PT Humpuss Intermoda Tbk, unable to unload the cargo to PEL.
The cargo is the first LNG cargo from Jangkrik field operated by Italian firm Eni SpA processed at Bontang LNG plant. The spot cargo was bought by Pertamina, which has a contract to supply six small cargoes to PEL in six months, Pertamina LNG Marketing VP Didik Sasongko Widi told Petromindo.Com.
Benoa LNG terminal is contracted to supply 40 MMSCFD of gas to the Pesanggaran PLTDG.
IP Director Eri Prabowo said on July 7 that the power plant finally agreed to receive the LNG cargo, although price negotiation had yet to be concluded. The company, however, was hopeful for a gas price of below $10 per mmbtu.
Editing by Reiner Simanjuntak