THE upstream oil and gas regulatory agency of Indonesia (BP Migas) has signed six gas sales and purchase agreements for power plants, petrochemical, and the industries worth $578 million in total.
Head of BP Migas R Priyono says soaring global crude oil price recently had boosted gas sales price from $4 per - $4.5 per MMBTU to $5 MMBTU (million British thermal unit).
“The value (gas sale price) indeed increases to an average of $5 per MMBTU,” he says.
The six gas sales and purchase agreement consists of three agreements for the electricity sector, one for the petrochemical sector, and two for the industries.
The details of the agreements for the electricity sector involve PT Pertamina EP and three gas buyers. The first buyer is PT Multi Daya Prima Elektrindo, which will buy gas from PT Pertamina EP for 10 years starting from 2008. The gas will be used to fire power plants in Sako Palembang, South Sumatra. The value of the contract is $26.7 million.
The second buyer is PT PLN, which will buy gas from PT Pertamina EP for eight years starting from 2009 to fire power plants in North Sumatra. The value of the contract is $260 million.
The third buyer is PT Pembangkitan Jawa-Bali (PJB), which will buy gas from PT Pertamina EP for two years starting from 2008 to fire a power plant in Muara Tawar. The value of the contract reaches $100 million.
Petrochemical and Industries
In the petrochemical sector, Medco Methano Bunyu will buy gas from Medco E&P Tarakan for three years starting from 2008 to fire a methanol refinery in Bunyu. The value of the contract is $37 million.
In the industry sector, Vico will buy gas from Pertamina EP only in 2008 with a contract value of $138 million, while Pertiwi Nusantara Resources has agreed to buy gas from Pertamina EP for eight years starting from 2009 with a contract value of $138 million.
The first partnership contract on coal bed methane between BP Migas and the Medco and Ephindo consortium has been signed.
In the contract, the contractor gives a total $1 million in fixed investment commitment and will get a signature bonus of $1 million.
