EMP set to raise gas price by nearly 90 percent
Ika Krismantari, The Jakarta Post, Jakarta | Fri, 08/28/2009 9:48 PM
Local oil and gas producer PT Energi Mega Persada (EMP) said Friday that it had signed an agreement with state-owned electricity firm PT Perusahaan Listrik Negara (PLN) to raise its gas price by 88.6 percent by July 2010.
Under the agreement, the change in price will only be applied if the supply of gas to PLN reaches 30 million standard cubic feet per day, the company said in a statement Friday.
The price of gas — supplied from one of EMP’s units, Kalila Limited — will increase to US$5 per million British thermal units from its previous price of $2.65 per million British thermals unit, the company said.
An escalation term of 3 percent per year will also come into play.
Currently Kalila produces 19 million cubic feet of gas per day, of which around 13 million cubic feet goes to PLN. The remaining 6 million cubic feet goes to local paper company PT Riau Andalan Pulp and Paper.
