PLN eyeing maximum domestic gas portion from Donggi-Senoro

State electricity firm PT Perusahaan Listrik Negara (PLN) is expecting to get the domestic gas portion of maximum 30 percent from the Donggi-Senoro project.

PLN? director of primary energy Nur Pamudji said on Monday the company had sent a letter to the goverment, saying if possible, it would take the maximum amount of gas allocated for the domestic market.

However, the company had yet to get a reply.

With regards price, he said, PLN had ageed with the gas producers, that is PT Pertamina and PT Medco Energi International, that it would pay for the gas based on exploitation costs rather than international price.

The agreement still needs approval from oil and gas upstream sector regulator BPMIGAS, he said.

Earlier, CEO Dahlan Iskan said that PLN would absorb 80 percent of the proposed floating LNG receiving terminal?s capacity that would be built in Jakarta Bay.

Dahlan also hinted that PLN might want to buy LNG from Donggi Senoro LNG plant in Central Sulawesi. The LNG from the plant would be shipped to the planned Jakarta Bay receiving terminal, he said.

The terminal, which is 60 percent owned by state oil, gas company Pertamina and 40 percent by state gas distribution firm PT PGN (Persero) will have initial processing capacity of 1.5 million tons of LNG per annum.

Director General of oil and Gas Evita Legowo said in January 2010 that West Java fertilizer firm PT Pupuk Kujang will absorb 18 percent of the capacity. (*)