PLN says BP agrees to allocate LNG from Tangguh for PLTGU Jawa-1 project
Wednesday, January 25 2017 - 05:35 AM WIB
Petromindo
State-owned electricity firm PT PLN claimed that BP Indonesia, the operator of the Tangguh LNG plant in West Papua, has agreed to allocate LNG for the planned 2x800 PLTGU Jawa-1 combined-cycle power plant project in West Java.
PLN Procurement Director Supangkat Iwan Santoso told Petromindo.com on Tuesday that the LNG allocation has been approved by upstream oil and gas authority SKK Migas and the Directorate General of Oil and Gas. ?We?re now waiting for the approval of the minister of energy and mineral resources,? Supangkat said.
He said that the agreement between PLN and BP Indonesia include in terms of LNG volume and price. He declined to provide further details.
Meanwhile, Country Manager of BP Indonesia Samsu Dharmawan declined to provide comment on commercial matters.
Head of LNG Marketing Division at SKK Migas, Rayendra Siddik said earlier that the regulator has recommended for up to 1 million tons per annum of gas from the Tangguh LNG plant for the PLTGU Jawa-1 project.
PLN announced on October 26 of last year a consortium comprising of state-owned oil and gas firm PT Pertamina, Marubeni and Sojitz Corp as the winning bidder for the estimated US$2 billion power plant project. The consortium, however, has been engaged in lengthy negotiation process of the terms and conditions of the project with PLN, thus delaying the signing of the power purchase agreement (PPA).
Supangkat said that the PPA is expected to be signed by the consortium and PLN soon.
Editing by Reiner Simanjuntak