PLN, Petronas to sign gas sales and purchase agreement soon

State electricity company PLN and Malaysia?s Petronas Carigali will soon sign a gas sales and purchase agreement to fulfill the gas need of PLN?s Tambak Lorok power plant in Semarang, Central Java.

?We hope to be able to sign the agreement this month,? said PLN Director for Primary Energy, Nur Pamudji.

Nur said that the Petronas gas supply will come from the Muria block, in the Kepodang field, off the northern coast of Java. The company will supply 116 mmscfd of gas starting 2014.

PLN and Petronas are currently finalizing the contract. Nur declined to disclose the price of the gas. A Petromindo.Com source, however, said that PLN will pay US$6 per MMBTU for Kepodang gas including toll fee.

He said that the gas supply agreement with Petronas will be effective after the gas transportation agreement between Petronas and PT Bakrie & Brothers, the contractor for the Kalimantan-Java gas pipeline project, has been signed. (godang)