PLN eyes LNG allocation from Bontang plant

By Godang Sitompul

State-owned electricity company PT Perusahaan Listrik Negara (PLN) is eying for LNG allocation from the Bontang LNG plant in East Kalimantan as an option if the promised LNG allocation from the Sengkang field could not be realized next year.

PLN Head of Gas and Fuel Division, Suryadi Mardjoeki told Petromindo.com Thursday that his company was looking for 5 cargoes of LNG allocation (equal to about 40 mmscfd of gas supply) from the Bontang plant.

This option is taken by PLN to anticipate the possibility of gas from the Sengkang field operated by Energy Equity Sengkang could not flow to the PLN power plants in Bali in 2014, which require 40 mmscfd of gas supply.

?We?re waiting for the Sengkang LNG, but until now the gas allocation from Sengkang encounters obstacle at SKK Migas,? Suryadi said, referring to the upstream oil and gas authority, but did not specified what the problems are.

Suryadi said that PLN would hold negotiation with PT Badak NGL, the operator of the Badak LNG plant, over the LNG allocation and the price.

Meanwhile, PT Badak NGL President Director, Nanang Untung, told Petromindo.com that his company was ready to allocate the LNG for PLN as long as the price is right, and also depends on the timing and length of contract.

Editing by Reiner Simanjuntak