Pertamina EP to supply gas to Rembang power plant

Pertamina EP, a subsidiary of state-owned oil and gas company PT Pertamina said that it planned to conduct exploration activities at Gundih gas field in Blora, Central Java to meet the gas supply demand for 50 million cubic feet per day (MMCFD) from Rembang gas-fired power plant.

Pertamina EP?s manager for development Rony Gunawan said in Jakarta Thursday that the company is now waiting for an approval of the gas field exploration plan from the upstream oil and gas regulatory body, BPMIGAS.

?Hopefully, we?ll get an approval (from BPMIGAS) next month,? he said.

Gas outputs from the field would be transmitted through 90 km-long pipeline spanning from Randublatung, Blora to Rembang. The gas transmission which is under 12 year contract is expected to start in January 1, 2010.

He said that gas reserves in Gundih field reaches 0.4 trillion cubic feet.

The Rembang gas-fired power plant is an independent power producer (IPP) operated by a consortium of three companies, including Indonesia Power and Titis Sampurna.

Based on an agreement, the gas will be sold to power plant at a price of US$2.7 per MMBTU with three percent escalation per year. (*)