PLN, Pertagas discussing gas supply for Grati

By Godang Sitompul

State utility firm PT Perusahaan Listrik Negara (PLN) and gas distributor PT Pertamina Gas (Pertagas) are close to completing discussion on technical and commercial aspects on the utilization of East Java gas pipeline project, in view of signing the head of agreements (HoA) later on this month.

Through the pipeline network, PLN expects to be able to absorb 300 mmscfd of gas to supply Grati power plant in the province.

?The HoA will be about the use of the pipeline to supply Grati. We expect to sign it this month. We are still in intensive discussion,? said PLN Head of Oil and Gas Fuels Division Suryadi Mardjoeki to petromindo.com.

Suryadi added that the sources of gas would come from, among others, the Kangean Energi and from the Santos Peluang field.

Separately, Pertagas President Director Gunung Sardjono confirmed about the discussion. In addition to pricing issue, the discussion also centers on the volume and period of the contract.

Editing by Dadan Wijaksana