PGN clinches deal with ConocoPhillips, gets new gas supplies
Friday, March 19 2004 - 03:06 PM WIB
?Toll fee is agreed at flat rate of US$0.84 per MMBTU for 17 years,? said president WMP Simanjuntak. Under the agreement, PGN will transport up to 400MMCFD of gas through its pipeline, which is expected to be completed in late 2006. Simanjuntak expected gas transportation agreement with ConconoPhillips along gas sales agreement between ConcoPhillips and state and PLN could be signed within weeks.
He also said PGN itself is looking to buy ConocoPhillips gas for its West Java customers. ?We are looking to buy 100MMCFD from Corridor block, but thus far, but the deal is not yet signed,?said Simandjuntak. PGN last year had signed Gas Sales Agreement to buy 250 MMCFD of Pertamina?s South Sumatra gas, also to be transported and sold for PGN?s West Java customers.
Meanwhile, director Nursubagio said PGN will get new gas supplies of at least 100MMCFD this year from Java gas producers. He said PGN had sign principal agreement with Ellipse Energi Jatirangon Wanaha, an operator of a small gas block near Jakarta to supply 10 MMCFD of gas starting July this year for 10 years, ramping up to 30 MMCFD in one or two years. ?Total Volume is 30BCF,? he said. PGN had also signed agreemnt with East Java gas producers Lapindo Brantas, which will supply 80MMCFD to PGN staring this year and with Australian firm Santos Ltd, which will supply 100MMCFD starting 2006.
PGN is also in talks with BP Plc, over the possibility to increase gas supply from ONWJ gas field offshore north Java from 65MMCFD currently to 85MMCFD starting this year. Similar talks also underway with East Java gas producer CNOOC-operated West Madura PSC. ?We are looking to get gas supplies of around 20MMCFD,? said Nursubagio. (alex/godang)