PLN in gas supply talks with Pertamina, PGN

State electricity firm PLN is negotiation with Pertamina and PGN over gas supply to PLN?s power plants in Jakarta, The Jakarta Post reported.

PLN?s deputy director Tonny Agus Mulyantono said that PLN was seeking some 100 MMCFD gas supply each from Pertamina and PGN to fuel its gas short power plants.

The gas will be supplied from Pertamina?s gas field in South Sumatra while PGN will resell a portion of gas it will buy from ConocoPhillip-operated Corridor block, also in South Sumatra. PGN is contracted to buy 400MMCFD of gas from Corridor block.

Tonny said MoU will be signed this month.

PGN is currently constructing South Sumatra to West Java pipeline that will transport gas from South Sumatra to industrian provincies of Banten, West Java and Jakarta. The pipeline is expected to be completed next year and would be able to transport 1 BCFD of gas.(*)