PGN, PLN sign gas supply agreements

State owned gas distributor PT Perusahaan Gas Negara (PGN) will supply natural gas to two power plants located in South Sumatra and North Sumatra respectively owned by state owned electricity firm PT Perusahaan Listrik Negara (PLN).

Under the gas sales and purchase agreement signed on Wednesday in Jakarta, PGN will supply the PLTG Talang Duku power plant in South Sumatra with 8 BBTUD of natural gas over a period of 10 years, PGN's President Director Hendi Prio Santoso said.

The gas will be channeled from the existing SSWJ pipeline owned by PGN.

The gas distributor also signed a memorandum of understanding to supply gas to a power plant to be built by PLN from an LNG receiving terminal to be built in the province by PGN together with PLN and state owned oil and gas firm PT Pertamina.

PGN's director Michael Baskoro said PGN was still negotiating with PLN on the volume of gas to be supplied from the LNG receiving terminal. "We are capable of supplying between 100-150 BBTUD," he said.

PLN's new President Director Dahlan Iskan said PLN's gas demand in North Sumatra now amount to 145 BBTUD, while Pertamina can only supply 50 BBTUD from its Glagah Kambuna TAC field, creating a shortfall of 95 BBTUD. (Godang)