PLN, Nusantara Regas reach agreement on LNG payment

By Godang Sitompul

State owned electricity firm PT Perusahaan Listrik Negara (PLN) has reached agreement with PT Nusantara Regas on payment for regassified LNG delivered from West Java FSRU to PLTGU Muara Karang power plant.

?Nusantara and PLN have reached agreement on conditions which will become the basis for payment of the gas. PLN will make payment within 15 days after they receive the bill,? Nusantara?s Director of Finance and Administration Soetikno told Petromindo.com.

PLN started receiving regassified LNG from West Java FSRU offshore North Jakarta owned by Nusantara in May. The LNG shipped from the Badak LNG plant in Bontang, East Kalimantan is used for PLN?s PLTGU Muara Karang power plant in North Jakarta. Nusantara has delivered one cargo of LNG and is delivering the second cargo. Earlier, PLN refused to make payment for the LNG, citing that no agreement has been reached regarding the price of the fuel.

In response, Nusantara threatened to cancel the order for the third LNG cargo, saying it does not enough cash to pay due to PLN?s failure to foot the bill.

With PLN and Nusantara now having reached agreement on the payment, Soetikno said Nusantara would not cancel the shipment of the third cargo.

The news on the agreement between PLN and Nusantara was welcome by Vice Minister of Energy and Mineral Resources Rudi Rubiandini.

?Thanks God. Finally, the problem has been solved. We hope state companies of the country continue to improve their synergy and coordination so that all problems can be solved through the spirit of sharing,? he said.

Editing by Johannes Simbolon