Sengkang gas price deal to be signed soon: BPMIGAS

Upstream oil and gas authority BPMIGAS said Wednesday the proposed increase in gas sales price from Sengkang PSC in South Sulawesi to the 195-MW Sengkang gas-fired power plant has been ?verbally? agreed.

The price will be raised to US$3.5 per MMBTU from $2.45 per MMBTU, BPMIGAS spokesman Sulistya Hastuti Wahyu told Petromindo.Com.

He said that the deal will be signed soon, without giving a time frame.

In the end of April, Energy Equity Epic Sengkang (EEES), an operator of Sengkang gas block, is forced to stop gas production operations after hundreds of Wajo regency residents backed by its regent, stormed the Company?s office. The residents demanded EEES to pay royalty on gas produced and also demanding that gas price to be increased.

EEES is the only gas supplier of the power plant which is owned by PT Energi Sengkang. Both companies are subsidiaries Energy World Corporation (EWC) of Australia . (bernard)