Sellers, buyers sign 545 TBTU of gas contracts
Tuesday, December 19 2006 - 08:48 AM WIB
PT Pertamina EP, a unit of state-owned oil and gas PT Pertamina, agreed to sell natural gas from Gundih field in Central Java to PT Sumber Petrindo Perkasa with a total volume of 219 TBTU for a 12-year period starting 2009. The natural gas will be used by the proposed Rembang power plant, which is also located in the province.
PT Pertamina EP West Java region also signed an amendment to its gas sales contract with Cikarang Listrindo signed in 1995 with a total volume of 394 TBTU for 21 years. The amendment will enable both parties to adjust gas prices. Cikarang Listrindo operates Cikarang power plant in West Java.
PT Pertamina EP also signed a gas sales and purchase agreement with PT Pertiwi Nusantara Resources for a total volume of 4.34 TBTU for 5 years starting 2007. The natural gas, which is sourced from Pamanukan Selatan field, will be used for industrial consumer in West Java.
PT Pertamina EP has agreed with Fajar Surya Wisesa to amend the contract signed in 1996 to enable both parties to adjust gas prices. PT Pertamina EP is contracted to supply a total of 17 TBTU to Fajar Surya under a 16-year period.
Meanwhile, Kodeco Energy signed a Head of Agreement (HoA) with PT MKS for gas supplies to the proposed power plants in Bangkalan (Madura) and Gresik in East Java, which are expected to start in 2007.
Kodeco Energy also signed a gas sales purchase agreement with state-owned gas distributor PT PGN Tbk for a total of 51.26 TBTU for a 6-year period.
On the same occasion, Lapindo Brantas Inc signed a HoA PT Indogas Kriya Dwiguna for gas supplies with volume of 10.20 TBTU for ten years starting 2007.
Chairman of upstream oil and gas authority BP Migas Kardaya Warnika said the gas supplies that will be delivered by Kodeco under the HoA are valued at US$1.6 billion, while Lapindo's gas supplies are valued at $1.2 billion.
"The value of gas supplies that will be delivered by Pertamina under the agreements is being calculated," Kardaya said.
Kardaya hoped the agreements will encourage others PSCs to fulfill gas domestic requirement.
Elsewhere, BP Migas said in a statement that it had facilitated a Cargo Loading Agreement between PT Pertamina EP and state-owned fertilizers PT Pupuk Iskandar Muda (PIM) in Aceh and PT Pupuk Kalimantan Timur (PKT) in East Kalimantan.
Under the deal, Pertamina will swap a total of 8.9 TBTU of gas or about 3 cargoes of liquefied natural gas (LNG), which is previously allocated for PKT, to support the operation of PIM.
?The switch process is expected to start in January 2007, so as it can support the operation of the fertilizer (PIM) for six months,? BP Migas said in the statement. (godang/denny)