PLN Batam asks well-head price for PGN gas
Thursday, March 27 2014 - 08:17 AM WIB
State-owned electricity company PT Perusahaan Listrik Negara (PLN) through its subsidiary PT PLN Batam asks state owned gas distributor PT Perusahaan Gas Negara to set a wellhead price for the gas it will deliver to the power plant being built by the former in Tanjung Uncang.
"Because Batam does not get (electricity) subsidy (from the government), it is natural that PLN Batam asks for a wellhead price for the gas," PLN's Head of Gas and Fuel Division Suryadi Mardjoeki told Petromindo.com, without specifying the wellhead price.
He said PLN has signed a Gas Sales Agreement (GSA) with PGN, but PLN is seeking to amend the contract to accommodate its request for wellhead gas price.
"We hope the amendment of the GSA contract can be completed later this month," he said.
He also added the gas will be transmitted from Grissik field in the Corridor block, South Sumatra operated by American firm ConocoPhillips to Tanjung Uncang, where PLN is building a 2x42.5 MW gas turbine power plant. The power plant project is expected to be completed at the end of this year. In the same location, PT Medco Power, through its subsidiary PT Universal Batam Energi, is building a 2x35 MW gas turbine power plant, which is almost completed. Under contract, both power plants will get gas supplies from the Gajah Baru field in Block A Natuna PSC operated by Premier Oil. But, the pipelines that will be used to deliver that is now under construction and is scheduled to be completed in September 2015, according to upstream authority SKK Migas.
Pending the completion of the pipeline, both, PLN and Medco, expects PGN to supply ?interim gas? for their power plants.
Editing by Johannes Simbolon