PGN, PLN sign gas transportation, sales deals

JSX-listed state gas distribution firm PGN announced on Tuesday it has signed  two gas transportation deals and one gas sales agreement with  state electricity firm  PLN.

 

Under the deal, PGN will transport gas from Hess-operated Jambi-Merang PSC through its South Sumatra to Java pipeline to PLN’s power plants in Muara Tawar, near Jakarta. Under the 12-year deal that would commence in December 2009, PLN would pay toll fee of US$1.47 per MCF, PGN said.

 

The second transportation deal would involve transporting gas from Medco Energi-operated Singa field in Lematang block, onshore South Sumatra to PLN’s Cilegon power plant in Cilegon, Banten. The contract would commence April 7, 2009 for 9 years.

 

PGN also said it had signed gas sales agreement to sell 50MMCFD of gas for 5 years to PLN with price of US$4.5 per MMBTU in the first two years starting April 1, 2008. After two years, gas price would follow PGN’s prevailing selling price, PGN said. Gas that would be sold to PLN is part of the 400 MMCFD gas PGN bought from ConocoPhillips-operated Corridor block in South Sumatra.(denny)