PLN, ConocoPhillips strike gas price deal
Saturday, June 7 2003 - 01:41 AM WIB
However, upstream oil and gas authority BPMIGAS has yet to approve the price deal, Eddie told reporters.
?All I can say about our negotiations is that we have agreed on the gas price,? he said.
He refused to mention the gas price agreed on by the two firms. BPMIGAS vice chairman Kardaya Warnika said earlier it was US$2.75 per MBTU.
Eddie said further that their negotiations with ConocoPhillips had not yet concluded because PLN insisted on including ?delivery or pay? clause in their accord documents. The clause obliges the gas producer to pay PLN if it fails to supply gas as required.
PLN?s existing contracts with gas producers stipulate that it must pay them even if it does not need their products.
ConocoPhillips had offered to supply gas to PLN?s power plants on Java from its Corridor gas block onshore South Sumatra.
Currently, PLN operates three gas power plants in Muara Karang and Muara Tawar (West Java) and in Tanjung Priok (North Jakarta). The company had planned expansion projects on the Muara Karang and Muara Tawar facilities, and is underway to build another power plant in Banten by 2010. (godang)