Indonesia Signs Five Gas Deals
Indonesia has inked five gas agreements which is expected to generate about $10.5 billion, according to Jakarta Post newspaper.
“This is the biggest gas sales agreement in history for the domestic market,” Johanes Widjonarko, the acting chief of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), said in Jakarta on Friday.
The deals are LNG sales agreement between BP Tangguh and state owned power generator PLN, PHE Simenggaris and Medco E&P Simenggaris with PLN; PC Ketapang II Ltd and Petronas Carigali (Ketapang) Ltd with PT Petrogas Jatim Utama; PT Pertamina and Kaltim Pasific Amoniak; and Medco E&P Indonesia and Meppo-Gen.
According to Jakarta Post, deal between BP and PLN will last for 19 years, while PLN’s deal with PHE Simenggaris and Medco E&P Simenggaris will last for five years and see 0.5 million standard cubic feet per day (mmscfd) of gas delivered to help the firm fuel its power plants in Tana Tidung regency in North Kalimantan.
Petrogas Jatim will receive between 12 to 50 mmsfcd from Ketapang for five years for electricity generation in East Java.
In addition, Pertamina’s deal with Kaltim Pasific Amoniak is for over 65 billion British thermal units per day (bbtud) until 2019.