Pertamina, PLN sign JTB field gas sale, purchase agreement

State-owned oil and gas firm PT Pertamina signed on Monday gas sale and purchase agreement with state-owned electricity firm PT PLN for gas to be produced by the Jambaran Tiung Biru (JTB) field.

Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources said in a statement obtained Tuesday that PLN will buy the gas at a fixed price of US$7.6 per mmbtu for 30 years since the start of the field?s production targeted in 2021.

Pertamina plans to develop the JTB field in Central Java. Total investment requirement of the project is estimated at US$1.55 billion, excluding the cost for the construction of the 276-km Gresik-Semarang gas pipeline estimated at $515 million, the statement said.

Editing by Reiner Simanjuntak