URGENT: Vice Minister rebukes PLN over Tangguh deal
Thursday, June 21 2012 - 03:36 AM WIB
Vice Minister of Energy and Mineral Resources Rudi Rubiandini has strongly criticized public utility PT Perusahaan Listrik Negara (PLN) for agreeing to buy LNG from the Tangguh plant in West Papua at above export price.
Rudi described the PLN-Tangguh agreement as a ?stupidity?
?When PLN agreed to buy Tangguh LNG at the price of US$13-$14 per mmbtu, it was (considered) a stupidity because aside from the fact (PLN) does not get (government) subsidies for the (purchase of) gas, the price is above (Indonesia?s) average export price,? Rudi told Petromindo.com.
PLN signed on May 24 a Memorandum of Understanding (MoU) with British Energy giant BP Plc, the leader of the Tangguh consortium, on LNG supplies from Tangguh to the former?s power plants in North Sumatra and Jakarta.
Under the MoU, PLN will get LNG supplies amounting to 230 mmscfd starting October 2013, comprising 110 mmscfd for its power plant in Belawan, North Sumatra and 120 mmscfd for its power plant in Jakarta.
Both parties refused to unveil the price during the signing ceremony.
In comparison, Rudi said, PT Nusantara Regas, the joint venture of PT Pertamina and PT Perusahaan Gas Negara, buys LNG for $11 per mmbtu for its floating LNG terminal, West Java FSRU. The FSRU, located offshore North Jakarta, now gets LNG supplies from Badak LNG plant in Bontang, East Kalimantan.
Rudi said he appreciated Nusantara Regas for its ?bravery? to buy the fuel at such price level.
Editing by Johannes Simbolon