PLN says ready to absorb gas from Simenggaris block
Monday, October 15 2012 - 02:57 AM WIB
State-owned electricity PLN said that it was ready to absorb gas from Simenggaris block to be supplied for its power plants in Samarinda and Balikpapan, East Kalimantan.
PLN Head of Fuel and Gas Division, Suryadi Mardjoeki said that the company would require 34 mmsfcd of gas from the block, operated by JOB PHE-Medco EP Simenggaris.
?As the gas from the block will be distributed in East Kalimantan (Samarinda and Balikpapan), then the gas must be transformed into LNG or CNG to transported,? Suryadi told Petromindo.com Monday.
He said that Medco can build an LNG regasification unit to transform the gas into LNG.
In terms of price, PLN expects it could buy the gas at a price of about US$13 per mmbtu. Suryadi said that the gas price includes the well head gas price, liquefaction, transportation and regasification costs.
Editing by Reiner Simanjuntak