TEMPO.CO, Jakarta - UK-Based BP Berau Ltd, the operator of Tangguh gas fields, has agreed on sales and purchase agreement on liquefied natural gas (LNG) with state-owned electricity company PLN to supply gas to Java 1 power plant in Cibatu Baru, West Java, from 2020 to 2025.
“We expect the gas [output] to be accommodated entirely by PLN to provide sufficient electricity and improve the national electrification ratio,” the Upstream Oil and Gas Regulatory Task Force (SKK Migas) chairman Amien Sunaryadi said yesterday during the contract signing in Jakarta.
BP will supply 16 LNG cargoes per year. It was the second agreement signed between PLN and BP, the previous one was signed in April last year in which BP agreed to sell 44 LNG cargoes from 2020 to 2030.
Both have agreed that the gas price is set out at 11.2 percent of Indonesia crude price (ICP) per million metric British thermal unit (MMBTU), whereas transport cost is 0.4 percent. PLN procurement director Iwan Santoso claimed that the price is the lowest for LNG.
Amien compared LNG price set out by PT Nusantara Regas who supplies gas to Muara Karang and Muara Tawar steam-fired power plants at 11.25 percent of ICP per MMBTU plus transport costs of 0.7 percent. Price calculation is set forth in new regulation on gas procurement issued by the Energy Ministry and Mineral Resources Minister Ignasius Jonan early last year.
The developer of Java 1 gas power plant is Jawa Satu Power, owned by a consortium comprising state-owned oil and gas company Pertamina, Japan-based Marubeni and Sojitz. The operations will commence in 2020 with a generating capacity of 1,760 megawatts.
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