PetroChina to supply flare gas to PLN?s proposed power plant
Friday, August 5 2005 - 07:07 AM WIB
State-owned electricity firm PT PLN is preparing to build a gas-fired power plant near Tuban, East Java, following a gas supply agreement with PetroChina, an offiical of upstream regulatory body BP Migas said on Friday.
The BP Migas official told Petromindo.Com that PetroChina had agreed on Friday to supply about 7 million cubic feet per day (MMCFD) of flare gas from the Mudi field of Tuban Block at the price of US$1.1 per MMCF to the proposed power plant.
The Gas Sales and Purchase Agreement is expected to be signed within this month (August), the official said. Meanwhile, the power plant is scheduled to start operation this year.
According to him, the deal has been endorsed by a team at the Coordinating Ministry for the Economy.
PetroChina operates Tuban under a Join Operating Body with state-owned oil and gas firm PT Pertamina. (alex)