Pertamina and PLN ink 30-year agreement

JAKARTA, August 8, 2017 – On Tuesday, Pertamina and PLN, entered into a 30-year heads of agreement for the supply of natural gas.


The agreement stipulates that PLN will receive 2.83 mcm (100 mcf) per day of gas at a set price of USD 7.60 per Btu. The majority of the price is attributed to the resources; however, USD 0.90 has been earmarked to satisfy pipeline toll fees.

Pertamina will tap the Jambaran-Tiung Biru field in East Java once production begins in 2020 or 2021. While the field is expected to produce 9.35 mcm (330 mcf) per day once online, analysis suggests that 35% of that quantity will be carbon dioxide.

A gas sales purchase deal for resources at the Jambaran-Tiung Biru field will likely be signed by Pertamina later this year.

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