Six gas sales, purchase agreements signed at IPA convention
Wednesday, May 17 2017 - 07:24 AM WIB
Six gas sales and purchase agreements were signed on Wednesday at the opening of the Indonesia Petroleum Association (IPA) Convention and Exhibition 2017 in Jakarta.
Chairman of upstream oil and gas authority SKK Migas, Amien Sunaryadi said in a statement that the gas supplies will all be allocated for the domestic market including for power plants, manufacturing industries, oil and gas lifting, and households, which is line with Minister of Energy and Mineral Resources Regulation No 6/2016.
He added that the gas deals will provide additional revenue of about US$5 billion for the state during the entire contract period.
Of the six agreements, only four were new agreements, while the other two are amendment of previous agreements, one of which is an LNG supply deal between BP, operator of the Tangguh LNG plant, and state-owned electricity firm PT PLN. Under the deal, BP agrees to provide additional supply of 16 cargoes of LNG per year to PLN from 2020 until 2035. The LNG supply deal is multi-destination, thus allowing PLN to utilize the LNG for its various power plants.
Following is the list of the six gas sales and purchase agreements
| No | Seller | Buyer | Alocation | Type of Agreement | Contract period | Supply Volume |
| 1. | Tangguh PSC Contractor Parties | PT PLN Persero | For IPP Jawa 1 power plant project | Sales and Purchases | ? 16 years
(2020-2035) | 16 cargos/year |
| 2. | ConocoPhillips (Grissik) Ltd | PT Perusahaan Gas Negara (Persero) Tbk | Industries in Dumai & Pekanbaru | Agreement Sales and purchase agreement | ? 5 years
(2018 - 2023) |
8 ramp up 37 BBTUD |
| 3. | EMP Bentu Limited | PT Pertamina (Persero) | Household gas pipeline network in Pekanbaru, Riau | Sales and purchase agreement | ? 15 years
(2016 - 2020) |
0.2 MMSCFD |
| 4. | EMP Bentu Limited | Perusahaan Daerah Tuah Sekata | Power plant | Amendment of sales and purchase agreement | ? 16 years
(additional gas from 2016 until 2021)? |
Volume change from 3 BBTUD to 6 BBTUD |
| 5. | Petrogas Basin | PT Malamoi Olom Wobok | Power plant, and oil and gas lifting | Amendment II of sales and purchase agreement | ? 4 years
(supply extension of gas from 2017 until 2020) |
As Is 8 MMSCFD |
| 6. | PetroChina International Jabung Limited | PT Gemilang Jabung Energi | Power plant in Tanjung Jabung Barat Regency | Sales and purchase agreement | ? 5.5 years
(2017 - 2023) |
- Year 1-2 at 2 BBTUD;
- Year 3 and beyond at 5 BBTUD |
Editing by Reiner Simanjuntak