PKT, producers sign Kalimantan gas supply deal
Friday, January 29 2010 - 01:14 AM WIB
East Kalimantan fertilizer firm PT Pupuk Kalimantan Timur (PKT) on Thursday signed Principal Agreement on gas supply from three Kalimantan gas producers, according to media reports.
Under the deal PKT will receive 80MMCFD of gas for 10 years from Sebuku Block which are operated by Pearl Energy and from Mahakam Block where Total SA and Inpex Corp are 50: 50 partners.
PKT President Hidayat Nyak Man said gas price would be tied to fertilizer price. Gas price would reach US$6 per MMBTU at ammonia price of $350-360 per tonne.
Gas would start flowing to PKT this year.(*)