SKK Migas allocates 1mtpa of gas for PLTGU Jawa-1 project
Monday, January 23 2017 - 05:33 AM WIB
Petromindo
Upstream authority SKK Migas said it will allocate 1 million tons per annum (mtpa) of gas from the Tangguh LNG plant in Papua operated by BP Indonesia for the planned 2x800 MW PLTGU Jawa-1 combined-cycle power plant project.
Head of LNG Marketing Division at SKK Migas, Rayendra Siddik said that the legal administrative documents are currently being prepared prior to the signing of the gas sales and purchase agreement (GSA) by BP Indonesia and state-owned electricity firm PT PLN.
?Once negotiation has been completed, what remains is the legal administrative issue, which is still being finalized. The (gas volume) is 1 mpta,? he told Petromindo.com over the weekend, adding that the GSA is expected to be signed in the first quarter of this year.
PLN announced on October 26 of last year a consortium comprising of state-owned oil and gas firm PT Pertamina, Marubeni and Sojitz Corp as the winning bidder for the estimated US$2 billion power plant project. The PPA was supposed to be signed 45 days after the winning bidder has been announced so that the power plant can start commercial operation in 2019, but earlier reports said that the consortium was seeking to renegotiation the terms and conditions of the project with PLN.
PLN Procurement Director Supangkat Iwan Satoso said last week the company was seeking to quickly sign the power purchase agreement (PPA) of the PLTGU Jawa-1 project with the winning contractor of the as further delays could postpone the completion of the key project.
Editing by Reiner Simanjuntak