PLN to sign LNG supply HoA with Nusantara Regas next week

State electricity firm PT Perusahaan Listrik Negara (PLN) said on Tuesday that it would sign heads of agreement (HoA) on LNG supply with PT Nusantara Regas, a consortium of PT Pertamina and PT Perusahaan Gas Negara (PGN), next week.

President Director Dahlan Iskan told reporters on Tuesday under the HoA, PLN will buy 400 MMCFD gas from Nusantara?s floating LNG terminal located in the port of Tanjung Priok, Jakarta. PLN will pay US$10 per MMBTU for the gas, he said.

?We expect to get an optimal gas delivery of 400 mmscfd by the end of 2011,? he said.

The gas will be used to fire PLN?s Muara Karang combined cycle power plant, he said.

Nusantara is planning to develop an LNG terminal capable to handling 3 million tons of LNG per annum or about 500MMCFD with operations expected late 2011 or early 2012.

Total E&P Indonesie will supply 1.5 MTPA of LNG to Nusantara from its Mahakam PSC gas block in East Kalimantan under 15-year supply contract. It is not yet clear where Nusantara will get the remaining 1.5MTPA of LNG supply. (godang)