PHE still negotiating gas price with Krakatau Steel
Thursday, August 2 2012 - 01:37 AM WIB
By Godang Sitompul
PT Pertamina Hulu Energi (PHE) is currently still in negotiation with state-owned steel maker PT Krakatau Steel over plan to supply gas from the ONWJ block to the latter company.
PHE, as requested by the government, plans to supply 10 mmscfd of gas to Krakatau Steel under a three-year contract that is expected to start this year.
?Negotiation is still on going. We want a price of above US$7 per mmbtu,? General Manager of PT PHE ONWJ, Jonli Sinulingga, told Petromindo.com Thursday.
?Krakatau Steel wants the gas to be delivered quickly this year. But we?re still negotiating the price,? he added.
Editing by Reiner Simanjuntak