PLN to sign gas purchase contracts with CNOOC and Amerada Hess

State owned electricity company Perusahaan Listrik Negara (PLN) will sign gas purchase agreements on December 12 with two gas producers including China National Oil Offshore Corporation (CNOOC) and Amerada Hess to supply its combined cycle power plants, Neraca reported on Thursday.

PLN's director for power generation and prime energy Ali Herman Ibrahim said in Jakarta on Wednesday that CNOOC, under the contract, would supply between 90 million to 100 million standard cubic feet a day to PLN's combined cycle power plant in Cilegon which has a capacity of 750 MW.

"PLN will buy the gas for US$2.67 per million British Thermal Unit (MMBTU) from CNOOC, which will begin the supply in 2005 for 15 years," he said.

He said that PLN would also at the same time sign a gas purchase agreement with Amerada Hess to meet the gas needs of PLN's other combined cycle power plant in Gresik, East Java.

Under the agreement, Amerada will supply 100 million standard cubic feet of gas a day to the 1,500 MW-Gresik combined cycle power plant for 15 years beginning 2006. The gas will be bought from Amerada for US$2.55 per MMBTU.

CNOOC’s gas supply will be sourced from Offshore South East Sumatra block, while Amerada' gas would be taken from the Ujung Pangkah gas field offshore East Java. (*)