Pertamina, PLN sign gas sales, purchase agreement

State-owned oil and gas firm PT Pertamina signed on Thursday a gas sales and purchase agreement with state-owned electricity firm PT PLN.

Pertamina said in a statement that under the agreement, its subsidiary PT Pertamina Gas will supply LNG for PLN?s 2x20 MW gas-fired power plant (PLTG) in Sambera, a remote area in East Kalimantan Province. The supply will start in April 2018 at a volume of 7.9 mmscfd.

Pertamina Gas will transport the LNG from the Badak LNG facility via trucks to the PLTG. The company has prepared 20 LNG trucks and set up a regasification unit near the PLTG.

The statement said that the agreement is valid for five years and can be extended.

Also on Thursday, a master sales purchase agreement was signed as part of long-term commitment of Pertamina to supply gas for PLN.

Editing by Reiner Simanjuntak