PLN ready to raise purchasing price for ONWJ gas

By Godang Sitompul

State owned electricity firm PT Perusahaan Listrik Negara (PLN) is ready to raise its purchasing price for gas from the Offshore North West Java (ONWJ) block controlled by state owned oil and gas firm PT Pertamina.

?We expect the new price to be around US$5 (per mmbtu). But, it depends on the economic analysis. We are waiting for BPMIGAS to decide,? PLN?s Oil Fuels and Gas Division Suryadi Mardjoeki told Petromindo.com.

He made the statement in response to the press reports that the ONWJ partnership is asking BPMIGAS?s permission to increase the price for its gas. At present, PLN buys ONWJ gas at the price of $2.6 per mmbtu.

Suryadi noted that PLN wants a stable supply from ONWJ, referring to the occasional stoppage of gas supplies from the block in the past. ?We want a Delivery or Pay clause (in the gas sales and purchasing contract), aside from the Take or Pay clause,? he said.

Editing by Johannes Simbolon