Perta Daya to build mini LNG plant

PT Perta Daya Gas will build a small scale liquefied natural gas (LNG) plant in Simenggaris, East Kalimantan to support the operation of several gas-fired power plants in the province, Kontan reported on Tuesday.

Suryadi Mardjoeki, the head for fuel division at PT Perusahaan Listrik Negara (PLN), said that the mini LNG plant would provide gas supply for three gas-fired power plants in Balikpapan, Tanjung Batu and Semberah. ?Perta Daya will receive gas supply of about 25 million standard cubic feet per day (mmscfd) from the Simenggaris block,? he said last week.

Perta Daya is joint venture between Pertamina?s subsidiary Pertamina Gas with a 65 percent stake and PLN?s subsidiary Indonesia Power with a 35 percent stake.

Suryadi said that Perta Daya was currently negotiating the price of gas with the operator of Simenggaris gas field JOB Pertamina-Medco E&P. ?We hope the price agreement could be reached in May,? he said.

According to him, PLN hopes the price of gas will not exceed $15 per mmbtu. PLN wants the price at well head is$7 per mmbtu, plus another $7 per mmbtu for transportation and regasification, he added. (*)