PLN to receive LNG from Tangguh this month

By Godang Sitompul

State owned electricity firm PT Perusahaan Listrik Negara (PLN) has been assured that it will receive two cargoes of LNG from the Tangguh plant in West Papua this month for two power plants in Jakarta, namely PLTGU Muara Karang and PLTGU Tanjung Priok.

The LNG will be delivered through FSRU Regas Satu, the floating LNG regassification terminal off North Jakarta, PLN?s Fuel Oil Division Head Suryadi Mardjoeki told Petromindo.com on Wednesday.

In the first quarter of next year, Tangguh will deliver four to five more cargoes of LNG fro the power plants, he said.

Suryadi noted however PLN and the Tangguh LNG plant have yet to sign a sales and purchase agreement due to disagreement regarding price.

BP Berau, that will provide gas supplies for the LNG for the two power plants, proposed a Price Adjustment Mechanism to be included in the agreement. The content of the proposal is however in conflict with the existing ministerial regulation, Suryadi said without specifying the ministerial regulation.

In September this year, SKK Migas? Deputy of Commercialization Widhyawan Prawiraatmadja said he hoped that PLN and Tangguh could sign the sales and purchase agreement in October this year.

Editing by Johannes Simbolon