PLN, Petronas still negotiate gas price for Tambak Lorok power plant

State-owned electricity company PT Perusahaan Listrik Negara (PLN) and Malaysian oil and gas firm Petronas Carigali are still renegotiating the price of gas to be supplied by Petronas? Muriah gas filed to the 600-MW Tambak Lorok combined cycle power plant in Semarang, Central Java.

Murtaqi Syamsuddin, PLN?s director for Java, Madura and Bali, said in Jakarta over the weekend that Petronas had asked for a revision in the existing contract to allow the Malaysian company to get an increase in the price of the gas to be piped to the power plant.

?We are still renegotiating the contract as the Malaysian company has demanded a higher price for the gas supply,? he said, adding that Petronas wanted the gas price to be increased from the $5 per million British thermal unit (MMBTU) as stated in the existing contract.

The Muriah gas field is located in Central Java while the 600-MW Tambak Lorok is owned by PLN.

Under the existing contract, Petronas would supply 140 MMCFD of gas to Tambak Lorok for 12 years, starting 2010.

Petronas and PLN had been renegotiating Muria gas price for years due to soaring development costs that have to be shouldered by Petronas.

Petronas has 100 percent interest in Muriah Block. (godang)