Pertamina, PLN sign LNG contract for PLTDG Pesanggaran

State owned oil and gas firm PT Pertamina (Persero) has signed a gas sales and purchasing agreement with public utility PT Perusahaan Listrik Negara (Persero) (PLN) to supply LNG for PLTDG Pesanggaran diesel and gas power plant in Benoa, Bali province.

The agreement was signed on April 1, 2016 in the presence of Minister of Energy and Mineral Resources Sudirman Said, Pertamina said in a statement on Wednesday.

Under the deal, Pertamina will supply one standard cargo of LNG, equivalent to 125,000 cubic meters of gas from the Bontang LNG plant in East Kalimantan with first loading scheduled for April 5. The volume will delivered in six shipment using Surya Satsuma vessel which has a capacity of 22,500 cubic meters. The gas will be first delivered to the mini LNG terminal jointly owned by PT Indonesia Power, a subsidiary of PLN, state owned port operator PT Pelindo II in Benoa.

The mini LNG terminal consists of a Floating Storage Unit (FSU) with a capacity of 26,000 cubic meters and a Floating Regasification Unit (FRU). The regasified LNG will delivered to PLTDG Pesanggaran owned by Indonesia Power.

?The signing of the LNG sales and purchasing agreement is a result of cooperation between Pertamina and PLN in securing gas supplies for power generation in Bali. This is a strategic step to support the oil fuel-to-gas conversion in Bali which the government has plotted to become a clean and green province,? Pertamina?s spokesperson Wianda Pusponegoro said.

Editing by Johannes Simbolon