PLN to get gas supply from ConocoPhillips

State-owned electricity company PT. PLN is set to obtain 40 bbtud of gas supply from the Grissik field in Koridor block, South Sumatra, which is managed by ConocoPhillips.

Bisnis Indonesia quoted PLN Head of Fuel Division Suryadi Mardjoeki as saying Monday that the upstream oil and gas authority SKK Migas has assured the company to obtain the gas supply. ?We?re now drafting the contract,? he told the paper.

Suryadi said that the gas sales and purchase agreement was expected to be signed in December of this year or in January of next year at the latest.

He added that this would be the first cooperation between PLN and ConocoPhillips.

Suryadi said that the gas from the Grissik field will be channeled to PLN?s power plant in Duri, Riau Province, to replace gas from Jambi Merang block.

He, however, said that the distribution of gas from Grissik to the Duri plant will only be realized once the development of the Sungai Kenawang-Grissik pipeline has been completed.

In the meantime, PLN will distribute the gas from Grissik to the Muara Tawar power plant via the South Sumatra-West Java pipeline.

Once the Kenawang-Grissik pipeline has been completed, the Muara Tawar power plant will get gas supply from Jambi Merang block, operated by JOB PHE Talisman, Suryadi said. (*)