PLN signs lubricant supply deal with Pertamina

State-owned electricity company PT Perusahaan Listrik Negara (PLN) and its subsidiaries PT Indonesia Power and PT Pembangkit Jawa Bali signed on Wednesday a basic agreement with state-owned oil and gas firm PT Pertamina for the supply of lubricants for power plants.

PLN said in a statement that this will be followed up with the signing of a more detailed three-year contract after both sides completed discussions on the terms and conditions including price and delivery.

PLN Director Bagiyo Irawan is hopeful that Pertamina?s extensive network across the country would be able to meet the lubricant needs of PLN?s power plants at about 10,000 kilo liters per year.

Pertamina, which claims controlling about 60 percent of the domestic lubricant market, has processing facilities in three locations, with combined capacity of 60,000 kilo liters per year, company?s Marketing Director Hanung Budya said.

Editing by Reiner Simanjuntak