PLN, ConocoPhillips agree on gas price for Muara Tawar plant

State electricity firm PLN and oil and gas producer ConocoPhillips have agreed on the price of natural gas for Muara Tawar combined cycle power plant in West Java, an official of upstream oil and gas authority BPMIGAS told Petromindo.Com Wednesday.

The price agreed was US$2.45 per MBTU, which would be gradually increased to $2.70 per MBTU, BPMIGAS vice chairman Kardaya Warnika said.

The two parties agreed that ConocoPhillips would supply 400 million standard cubic feet per day (MMSCFD) of gas for the 6x100-150 MW plant, starting from 2006, Kardaya said.

ConocoPhillips?gas for Muara Tawar will be from its Corridor Block in South Sumatra. It will be transmitted to Muara Karang through gas pipeline to be built by state gas transmission and distribution company PGN.

Kardaya said PLN and ConocoPhillips will sign the gas sales and purchasing agreement next month.

He added that the agreement to be signed by the two parties would include a ?delivery or pay? clause that obliges ConocoPhillips to pay PLN if it fails to supply gas to Muara Tawar.

Muara Tawar plant, located in Bekasi, West Java, was designed as a cash program project to resolve electricity supply crisis in Java. (godang)