Pertamina, PGN reach agreement on gas transportation price
Tuesday, January 9 2001 - 04:00 AM WIB
State oil and gas company Pertamina had reached an agreement with state gas distribution company PGN on the pipeline fee for gas delivery from Sumatra to Singapore, paving the way for Pertamina to sign the final contract for the supply of natural gas to Singapore Gas Supply Private Limited (SGSPL)
Head of exploration and production division at Pertamina's directorate of production sharing contract management M Trijana told Petromindo.Com Monday that Pertamina and PGN had agreed on the pipeline fee of 67 US cents per million British thermal unit (MMBTU) for the gas delivery from Sumatra to Singapore.
"The price agreement was reached last month," he said.
Earlier, Pertamina offered the price of 65 cents per MMBTU, while PGN set the price at 69 cents per MMBTU.
He said the agreement on the transportation fee paved the way for Pertamina and its production sharing contractors to sign the final contract for the supply of natural gas from Sumatra to Singapore.
Pertamina planned to supply gas to SGSPL from the gas fields owned by Canadian firm Gulf Indonesia Resources in South Sumatra and Jambi and American firm Santa Fe in Jambi.
PGN will build a pipeline network linking South Sumatra to Singapore through the island of Batam to transport the gas.
Pertamina, Gulf and Santa Fe signed preliminary agreements with SGSPL for the supply of gas several months ago but they were hindered from signing the final agreement due the disagreement over the transportation fee.
Trijana said Pertamina expected to sign the final contract with the SGSPL as well as the transportation fee agreement with PGN this month.
"The timeframe (for the signing of the final contract) is not yet final. But, for sure, (the final contract will be signed) this month," Trijana said. (Godang/Epin)