Petronas signs gas supply deal with Indonesia's PLN

Jan 25, 2010 01:00 AM

Malaysia's Petronas has signed a long-term gas supply contract with Indonesia's state-owned Perusahaan Listrik Negara (PLN).
The contract covers the supply of 100 bn Btu of natural gas a day over a 10-year period from Petronas's Muriah Block to PLN's 1,000 MW Tambak Lorok power plant. The deal is waiting on approval from upstream oil and gas regulator BP Migas on "the business scheme and the price", according to Nur Pamudji, PLN's primary energy director.

The gas will be transported 120 km by Petronas's pipelines from the Kepodang field in Jepara to the Tambak Lorok plant in Semarang, Pamudji said.
Petronas previously supplied gas to Tambak Lorok but PLN terminated the contract in October 2008, when Petronas asked it to pay more than the previously negotiated price of $ 4.80 per mm Btu.