PLN, consortium agree on LNG price for Jakarta power plants

State electricity firm PT Perusahaan Listrik Negara (PLN) said it has verbally agreed to buy LNG to fuel its power plants in western part of Java from a consortium of state oil, gas firm PT Pertamina (Persero) and state gas distribution firm PT Perusahaan Gas Negara (PGN) at US$8.5 per MMBTU.

?We have verbally agreed on the price of $8.5 per MMBTU for LNG supply from the proposed Jakarta LNG floating terminal project,? said CEO Dahlan Iskan, adding that the LNG will be used to fuel its Muara Karang and Tanjung Priok power plants, both are located in Jakarta.

According to Dahlan, Pertamina-PLN consortium which will run the LNG terminal, will supply 400 MMCFD to the power plants.

He said the LNG supply contract would start from 2011 until 2024.

He did not say when PLN will sign gas supply contract with the consortium.

Pertamina and PGN are teaming up to build an LNG terminal with initial capacity of 1.5MTPA in Jakarta Bay with completion scheduled late 2011. LNG supply for the terminal will be supplied from, among other, Bontang LNG plant, using gas feed from Total SA?s Mahakam block, also located in East Kalimantan and BP-operated Tangguh LNG plant in West Papua). (bernard)