PLN withdraws 4 cargoes of Bontang LNG from spot market
Friday, February 13 2015 - 02:50 AM WIB
State-owned electricity firm PT PLN (Persero) has withdrawn four cargoes of LNG from the spot market and brought them back to the Bontang LNG plant in East Kalimantan, according to an industry source.
The move is in line with the government?s decision to allocate 12 spot cargoes of LNG -- four from Bontang and eight from Tangguh plant -- to public utility PT Perusahaan Listrik Negara (PLN) via the Arun Storage and Regassification Terminal, better known Arun Regas, in Aceh, the source said to Petromindo.com.
Meanwhile, PLN's Fuel Oil Division Head Suryadi Mardjoeki said that Arun Regas will need 10-11 cargoes this year after the facility start to operation in March. Tangguh has allocated eight cargoes for Arun Gas this year.
"The problem is probably that PLN has yet to sign GSA (Gas Sales Agreement) and MSA (Memorandum of Sale Agreement) with Bontang plant. The GSA and MSA are now being discussed by our team. We thus far have only MSA with with Tangguh plant," he explained.
VP for LNG, Gas & Power at Gas Directorate of Pertamina Didik Sasongko Widi confirmed to Petromindo.com that PLN is still negotiating with Bontang plant on the GSA and MSA.
Editing by Johannes Simbolon