PLN, BP Indonesia to sign gas deal in October

By Godang Sitompul

Upstream authority SKK Migas hopes that BP Indonesia and state-owned electricity company PT Perusahaan Listrik Negara (PLN) could sign a planned gas sales and purchase agreement for LNG from the Tangguh refinery in Papua in October of this year.

Under the plan, the first shipment of two cargoes of LNG from Tangguh would be delivered via the Nusantara Regas Floating Storage and Regasification Unit (FSRU) to PLN?s Tanjung Priok and Muara Karang power plants.

?We?ll try to quickly conclude the agreement with PLN, if possible in October,? Deputy for Commercialization at SKK Migas, Widhyawan Prawiraatmadja told Petromindo.com Thursday.

Suradi Mardjoeki, Head of Fuel and Gas Division at PLN also said that the gas sales and purchase agreement between his company and BP Indonesia was expected to be signed in October of this year, with the first LNG shipment of two cargoes.

Editing by Reiner Simanjuntak