PLN, PGN sign gas supply deal
Thursday, September 25 2008 - 09:41 AM WIB
State-owned gas distributor PT Perusahaan Gas Negara (PGN) and state electricity firm PT Perusahaan Listrik Negara (PLN) signed on Thursday a gas purchase agreement to supply gas to PLN?s Cilegon 740-MW combined cycle power plant in Banten province.
PGN will supply gas starting next year to the power plant through its South Sumatra-West Java (SSWJ) pipeline at 30 MMCFD for 10 years with price of US$5.61 per MMBTU.
According to PLN's Director Jawa-Bali Murtaqi Syamsudin, PGN will install 400-meters additional pipeline to the power plant and a compressor will be built by PLN.
He expects the construction of the 400-meters pipeline will be finished in January 2009.
At the present, the Cilegon power plant is running at a capacity of 460 MW with gas supply at around 80 MMCFD from Chinese firm CNOOC. ?With the additional gas from PGN, Cilegon power plant will be running at full capacity of 740-MW,? he said. (godang/bernard)