URGENT: Nusantara Regas calls on PLN to make payment for LNG

By Godang Sitompul

PT Nusantara Regas, the owner of West Java FSRU, called Tuesday on state owned electricity firm PT Perusahaan Listrik Negara to make payment for one cargo of LNG that it has supplied to the latter?s power plant.

?We are now in (financial) difficulties, because PLN has yet to make payment amounting to US$41 million for one cargo of LNG. The cash that we have now is less than enough for the purchase of another cargo,? Nusantara's Director of Finance and Administration Sutikno told Petromindo.com.

Nusantara, which is a joint venture between oil and gas firm PT Pertamina and gas distributor PT Perusahaan Gas Negara, both owned by the state, get LNG supplies from the Badak LNG terminal in Bontang, East Kalimantan. After regasification process at the West Java FSRU, the gas is transmitted to PLN?s PLTGU Muara Karang combined cycle power plant in North Jakarta. The power plant starts receiving gas from Nusantara in early May.

Sutikno said Nusantara has delivered the gas despite that no agreement has been reached by the firm and PLN on the price of the gas.

?Please tell the minister (Minister of Energy and Mineral Resources Jero Wacik) that we have yet to sign the gas sales and purchase agreement. Nusantara sticks to the price set in the decree of the Ministry of State Enterprises that gives us an IRR (Internal Rate of Return) of 14 percent or a profit of less than $0.06 (per mmbtu).

?However, PLN still asks for lower price,? Sutikno said.

Editing by Johannes Simbolon