PLN, Shell sign HSD supply deal

State electricity firm PT Perusahaan Listrik Negara (PLN) and PT Shell Indonesia have signed on Thursday high speed diesel (HSD) supply deal to PLN?s power plants.

PLN?s President Director Fahmi Mochtar said that Shell will cooporate with local firm PT Kutilang Paksi Mas to supply 600,000 kiloliters of HSD to company?s power plants in Grati, East Java and 250,000 kiloliters to Belawan, North Sumatra.

Shell and Kutilang would supply HSD to both power plants for three years , he said.

Shell Indonesia?s Country Chairman Darwin Silalahi said that Shell would start supply HSD to both power plants in May this year.

In Dec 2007, PLN opened tender for the procurement of about 1 million kilolitres of HSD to meet the fuel needs of its power plants.

PT Shell Indonesia wan named winner after defeating other companies include PT Elnusa Petrofin, PT Patra Niaga, PT Sigma Rancang Bangun Persada and PT Petra Andalan Nusantara, a unit of Malaysian oil and gas firm Petronas. (godang)