PLN agrees to raise Sengkang gas price
Monday, March 12 2012 - 11:43 AM WIB
Australia-listed firm Energy World Corporation Limited (EWC) announced Monday that its subsidiary, Energy Equity Epic (Sengkang) Pty said that state utility PT PLN had agreed to raise the price of gas supplied from Sengkang block to the the 195 MW Sengkang power plant.
The company said in a press statement on Monday that the price increase was based on an interim agreement that had been signed by its subsidiary, PT Energi Sengkang, and PT PLN.
The deal was reached after a gas price review undertaken by the Indonesian Minister of Energy and Mineral Resources, Jero Wacik, who approved an increase in the gas price from the Sengkang Production Sharing Contract Block, effective from 1 January 2011.
As the effective date of this increase is from 1 January 2011, the Group will be entitled to an additional revenue of $22 million for 2011 which will increase its gross profit after tax by $5.2 million.
Energy Equity Epic (Sengkang) Pty Ltd, the operator of the Sengkang Production Sharing Contract Block, is now in the process of amending its gas sales agreement with the relevant Indonesian governmental authorities to reflect this new pricing. Prior to finalisation of such amendments, the increased gas price under the Interim Agreement applies.
Editing by Benget Besalicto Tnb.