PLN meets with BPMIGAS over Tangguh LNG, Gajah Baru gas swap
Tuesday, March 27 2012 - 01:35 AM WIB
State electricity company PT PLN has held a meeting with upstream authority BPMIGAS to discuss various issues including allocation of gas from Tangguh LNG, operated by BP Plc, the progress of Gajah Baru gas swap and supply of gas from Walanga, Sampi Sampi and Bonge (Wasambo) fields, operated by Ekuitas Energi Epic (Sengkang) Pty Ltd.
PLN Division Head for Oil and Gas, M. Suryadi Mardjoeki, told petromindo.com that PLN and BPMIGAS discussed the price of gas to be supplied from the Tangguh LNG project.
He however declined to disclose the price as it still needs the approval of the Energy and Mineral Resources Minister, Jero Wacik.
He said PLN has told BPMIGAS that it plans the gas from Tangguh to be supplied to PLN?s power plants via planned Floating Storage and Regasification Unit (FSRU), namely FSRU Belawan/Lampung, Arun receiving terminal, FSRU West Java and FSRU Central Java.
He said PLN has been told by BPMIGAS that all existing LNG production of Tangguh LNG project has been contracted to buyers under long-term contract. PLN can only hope for LNG, which would be diverted from Sempra to the company. The final decision of the price of LNG diversion is pending on the approval of the minister.
As for Gajah Baru gas swap deal, Suryadi Mardjoeki said that PLN has agreed to the BPMIGAS suggestion over guarantee of gas supply (article 23.8.5 of the agreement).
Under the gas swap agreement, BPMIGAS will seek alternative gas sources for Singapore buyers in the event of disruption of gas supply to the neighboring firms, therefore freeing PLN from paying compensation to Singapore buyers.
Under the swap deal, 40 mmscfd of gas from ConocoPhillips? Corridor Block originally planned to be sent to Singapore buyers, will be redirected to PLTG Muara Tawar, owned by PLN. While gas for Singapore buyers from Corridor Block, will be replaced by gas from Gajah Baru field, operated by Premier Oil.
PLN and BPMIGAS also discussed the progress of Wasambo fields. PLN told BPMIGAS that PLN is ready to buy LNG from the Wasambo fields that will be supplied to PLN?s power plants in eastern Indonesian region.
Editing by Roffie Kurniawan