PLN and PGN to sign another gas purchase agreements

State owned gas distribution company PGN and state owned electricity company PLN will sign new gas agreements today with gas producer PT Energi Mega Persada (EMP) to support their business activities.

The gas agreements would be signed simultaneously during the meeting of the National Gas Forum which is currently being held in Jakarta.

PLN's deputy director for prime energy Tony Agus Mulyanto said on Thursday that under the agreement , PLN would receive gas supply from EMP's Kangean gas field with a capacity of 130 million cubic feet per day from EMP for 15 years, beginning January, next year.

"The price of gas is about US$3 per British thermal unit," he was quoted as saying. He added that the additional gas supply would be used to operate PLN's combined cycle power plants PLTGU Gresik and PLTGU Pasuruan, both in East Java.

In addition, he said, that PLN would soon sign additional gas supply agreement with PT Medco Energi in January, next year. Under the contract, PLN will receive gas supply of about 50 milion cubic feet per day from Medco's oil field in South Sumatra for 15 years, beginning 2007.

The price of the gas which will be used to operate PLN's combined cycle power plant PLTGU Keramasan in Palembang is about US$3 per British thermal unit.

Meanwhile PGN's president director WMP Simanjuntak said that under the gas purchase agreement to be signed with EMP, PGN would get gas supply of about 15 million cubic feet per day, for two years, beginning January, next year. The gas will be supplied from EMP's Rancak gas field. The price is about US$2.8 per British thermal unit.

On Dec 20, PGN will also sign a gas purchase agreement with Kodeco Energy, under which Kodeco will provide gas supply of about 30 million cubic feet per day to PGN. The contract will last for six years.(Godang)