Pertamina can't fulfill PLN's demand for a gas price of below US$2 per MMBTU
Saturday, January 27 2001 - 04:30 AM WIB
The state-owned oil and gas company could not fulfill the demand of the state-owned electricity company PLN to obtain gas at price below US$2 per MMBTU unless the government provides subsidy, according to Trijana, a senior official at Pertamina's production and exploration division.
Trijana was quoted as saying by the Neraca daily that it would be financially difficult for Pertamina and its production-sharing contractors to sell gas at a price below $2 per MMBTU.
He was responding to earlier calls from PLN to sell gas at a price of $1.7 per MMBTU.
He added that Pertamina had lower its gas selling price to certain PLN power projects including for the Muara Karang/Tanjung Priok power generation project from $2.45 per MMBTU to $2.13 per MMBTU. (*)