Arco sells gas to PLN

JAKARTA (JP): American oil and gas company Atlantic Richfield Company (ARCO), a contractor of state oil and gas company Pertamina, signed a memorandum of understanding (MOU) on Friday to supply natural gas to a power plant in Central Java owned by state electricity company PT PLN.

Pertamina's spokesman, Ramli Djaafar, said in a statement that under the MOU, ARCO would supply the Tambak Lorok gas turbine power plant with between 80 million cubic feet and 115 million cubic feet of natural gas per day for 15 years, starting from 2003.

The gas will replace high speed diesel fuel which PLN is currently using at the power plant.

ARCO will supply the gas from the Kepodang gas field in Muriah, Central Java, which it recently bought from Anglo-Dutch oil and gas company Royal Dutch Shell.

The Tambak Lorok plant has two power generators, each with a 505 megawatt capacity. (jsk)