British Petroleum (BP) officially signed a Supply and Offtake Agreement (SOA) to provide state electricity company PT PLN 4 megawatts of electricity to be sold and distributed to the residential communities of Teluk Bintuni Regency in West Papua.
The agreement was signed at PLN’s office by William Lin, BP regional president Asia-Pacific and PLN’s president, Nur Pamudji.
"This reflects our intention to support economic development in West Papua. Today's agreement allows us to supply the first phase of 4 MW of electricity from the Tangguh LNG plant to light hundreds of homes and businesses on the north and south shores of Teluk Bintuni,” Lin said in an official release on Tuesday.
“Tangguh has worked diligently, in cooperation with PLN, the Energy and Mineral Resources Ministry, SKK Migas and the Bintuni Regency to complete the installation of electricity infrastructure and equipment interface at our facilities. Further technical evaluation is currently being performed, the result of which will determine whether we can supply an additional 4 MW of electricity to PLN in the future for Teluk Bintuni,” he added.
The SOA was signed following a memorandum of understanding that was inked in May 2012, and is part of the expansion plan for Tangguh LNG. Terms of the agreement allow the supply of electricity to PLN for 20 years for the surrounding areas of the Tangguh LNG plant in Teluk Bintuni.