PKSDE, TOTAL, Inpex sign gas agreement

PKSDE, the electricity and energy firm owned by the Kutai Kartanegara regental administration, East Kalimantan, has signed an agreement with TOTAL Indonesie and INPEX Corporation for the supply of gas to gas-fired power plant PLTG Senipah in the regency partly owned by the former.

Under the agreement, TOTAl and Inpex will supply 20 million cubic feet per day (MMCFD), equal to 20,000 MBTU, from their fields over a period of 20 years for the 2x40 MW power plant, PKSDE said in a statement sent to Petromindo.com.

The power plant is owned by the consortium of PKSDE and PT Toba Sejahtera with the former owning 10 percent shares. The power plant plans to start construction in August 2009 and come on stream in the middle of 2011.

The price of gas is set at US$3.5 per MMBTU plus an escalation of 3 percent per annum in the 2011?2017 period. From 2018 through 2031, TOTAL and Inpex will get $4.5 per MMBTU fortheir gas plus an escalation of 3 percent per annum and a 30 percent share of the increase in the selling price of electricity to state owned electricity firm PT Perusahaan Listrik Negera.

The power plant is expected to solve the electiricty shortage in the regency. (*)