PLN to conclude LNG price deal for Jakarta power plants

State electricity firm PT Perusahaan Listrik Negara (PLN) expects to finalize in August this year a deal with the consortium of state oil, gas firm PT Pertamina (Persero) and state gas distribution firm PT Perusahaan Gas Negara (PGN) on the price of LNG from the LNG floating terminal to be built by the consortium in North Jakarta.

PLN's director for primary energy Nur Pamudji said on Wednesday that negotiation on the gas price deal was now in progress.

He also said that PLN is set to buy 150 MMSCFD of gas from the Floating Storage Receiving Terminal to be built by PGN in Medan, North Sumatra.

The gas from the PGN facility would be used to add supply to its power plant in Belawan, which so far has only secured 28 MMSCFD of gas from Glagah Kambuna block, he added.

Earlier, PLN's president director Dahlan Iskan said that it has verbally agreed to buy LNG for its Muara Karang and Tanjung Priok power plants, both located in Jakarta, from the North Jakarta LNG terminal at US$8.5 per MMBTU.

According to Dahlan, the Pertamina-PLN consortium, which will run the LNG terminal, will supply 400 MMCFD to the power plants. He said the LNG supply contract will be valid from 2011 until 2024.

Pertamina and PGN are teaming up to build an LNG terminal with initial capacity of 1.5MTPA in Jakarta Bay with completion scheduled late 2011. LNG supply for the terminal will be supplied from, among other, Bontang LNG plant, using gas feed from Total SA?s Mahakam block, also located in East Kalimantan and BP-operated Tangguh LNG plant in West Papua. (bernard)