BP to Supply Indonesia's PLN

BP has signed an agreement with Indonesian state-owned power utility Perusahaan Listrik Negara (PLN) to supply 16 LNG cargoes annually from Tangguh project during the period 2020 to 2035, the Indonesian oil and gas regulator SKKMigas said May 17. The supply will be directed to different destinations so that PLN can use it for various power plants in Indonesia.

The deal was part of the six deals signed at the opening day of the Indonesian Petroleum Association Convention and Exhibition 2017. They are expected to contribute an additional $5bn in state revenues. The six signed agreements consist of four new agreements and two amendments to existing agreements. The BP-PLN agreement is among the four new agreements. SKKMigas did not provide details about the other deals. 

SKKMigas chief Amien Sunaryadi said the gas received through these agreements will be supplied to the power sector as well as to other industries.

BP and its partners announced the final investment decision to expand Tangguh on July 1 2016. The expansion project will add a third liquefaction train (Train 3) of 3.8mn mt/yr production capacity, taking the plant's total capacity to 11.4mn mt/yr. The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility, and supporting infrastructure.

Shardul Sharma