PLN secures gas supplies from overseas producers

State-owned electricity firm PT Perusahaan Listrik Negara (PLN) has signed initial agreements with a number of overseas gas producers that will supply the company in the future, The Jakarta Post reported on Thursday.

According to PLN oil and gas division head Suryadi Mardjoeki, the electricity firm has established a so-called master sales agreement (MSA) with the suppliers, including Shell and others from Qatar and Japan.

?Now, I?m waiting for a deal with supplier[s] from the US a kind of deal that allows me to ask for a direct delivery [of gas] when I need it,? Suryadi said.

PLN?s demand for gas continues to grow, to feed its power plants, in line with the government?s appeal to boost domestic utilization of the commodity to reduce the country?s dependency on oil.

Indonesia is estimated to have a quite significant amount of natural gas resources around 104 trillion standard cubic feet (tscf) in proven and 48 tscf in potential gas reserves. Despite the country?s huge gas resources, most of the gas is sold overseas due to poor infrastructure that hinders distribution to domestic players.

PLN is targeting to absorb 431 trillion British thermal unit (TBtu) of gas this year, an increase from 410 TBtU last year. (*)