PLN hopes LNG price at $10 per mmbtu
Tuesday, September 18 2012 - 01:14 AM WIB
State-owned electricity company PLN expects domestic gas producers to be able to sell LNG for the company?s power plants at a price of US$10 per mmbtu.
?We expect the LNG price to be about $10 per mmbtu plus a regasification cost of $3 per mmbtu. Therefore, the price of gas resulting from regasification of LNG will be about $13 per mmbtu,? Suryadi Mardjoeki, Head of Gas and Fuel Division at PLN, told Petromindo.com on Tuesday.
Separately, PLN President Director Nur Pamuji said that the company was currently waiting for the government?s decision on the price of LNG from the Tangguh plant in West Papua to be allocated for the utility firm.
?We?re still waiting (for the government?s decision). We?re confident the government will provide a good price for us,? he said, but declined to provide further details.
PLN signed on May 24 an MoU with BP, the lead consortium, which operates the Tangguh plant, on the supply of 230 mmscfd of LNG for its power plants in Jakarta and North Sumatra starting October 2013.
During a September 17 meeting with the House of Representatives Commission VII on energy, Minister of Energy and Mineral Resources Jero Wacik noted that PLN was projected to require gas supply of 357.5 tbtu next year with projected average gas price of $7.96 per mmbtu.
Editing by Reiner Simanjuntak