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Jakarta Post

Gas companies, PLN sign deals on cheap gas

  • The Jakarta Post

Jakarta   /   Thu, July 2 2020   /  01:00 am
The Lombok Peaker gas-fired combined cycle power plant (PLTMGU) in Lombok, West Nusa Tenggara. This 136MW peaker plant, which began operations in early 2020, supplies electricity during sudden spikes in local power consumption.(PLN/PLN)

Four gas producers have inked deals to supply gas at below market price to several gas-fired power plants as part of the government’s plan to slash billions of dollars in energy subsidies. Producers Pertamina EP, Pertamina Hulu Energi, PT Kangean Energy and EMP Bentu Ltd. signed on Friday 11 deals with state-owned electricity company PLN to supply the gas, said the Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) in a statement. Read also: Cheap gas incentives to cost government Rp 121.78 trillion in forgone revenue PLN, the plants’ operator, is slated to buy the gas at US$6.09 per million British thermal unit (mmbtu), cheaper than what the company is currently paying at $8.21 per mmbtu. “With lower gas prices, this will reduce PLN’s electricity supply cost [BPP] and thus, create a more efficient electricity supply,” PLN spokesman Ag...