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Indonesia’s state-owned electricity company PT PLN has requested that upstream oil and gas regulator BPMigas swiftly complete a swap agreement to channel natural gas from BPMigas’ Grissik field in South Sumatra to PT PLN’s electrical power generating plants in Sumatra and West Java.
PT PLN's senior manager for oil and gas procurement, M. Suryadi Mardjoeki said that the agreement would be finalized within the week, telling journalists, “In addition to PLN and BP Migas, the discussion will involve ConocoPhillips (the operator of the Grissik field); Joint Operation Body PT Pertamina Hulu Energi; Canada-based Talisman (operator of the Jambi Merang field); state gas distributor PT PGN and PT Transportasi Gas Indonesia,” The Jakarta Post reported.
According to a contract signed five years ago, PT PLN was to receive additional natural gas supplies of 65 million standard cubic feet per day (mmscfd) from the Jambi Merang field but because no pipeline network currently connects the Jambi Merang field with the Grissik field, where the South Sumatra-West Java pipeline is located, the Jambi Merang field natural gas cannot be delivered to PT PLN’s regional power plants. Accordingly, under the terms an interim arrangement was made for the swap agreement to provide PT PLN with 65 mmscfd natural gas supply from the Grissik field.
By. Joao Peixe, Deputy Editor OilPrice.com
Joao is a writer for Oilprice.com