PLN, VICO sign CBM sale purchase contract

By Godang Sitompul & Bernard Loebs

State utility PT PLN signed a sale and purchase contract of 0.5 MMSCFD coalbed methane (CBM) for 5 years with the energy firm Virginia Indonesia Co. (VICO).

?PLN signed with VICO a sale and purchase contract of CBM from Sangatta. The government set its price at US$7.5 per MMBTU,? PLN?s Fuel Oil and Gas Division Head Suryadi Mardjoeki told Petromindo.com in Jakarta on Wednesday.

He said that the CBM gas owned by VICO would be funneled to the combined cycle power plant owned by PLN in Sangatta, East Kalimantan.

Previously, it was reported last November that PLN had also signed with VICO a sale and purchase agreement for CBM gas from Sanga-sanga in East Kalimantan at the amount of 0.5 MMSCFD for a period of five years. But it did not mention its price.

Editing by Benget Besalicto Tnb.