Medco to sell gas to PLN

Medco to sell gas to PLN

JAKARTA: PT Medco Energi Internasional, Indonesia's biggest
publicly traded oil company, on Friday signed an agreement to
sell natural gas from its field in South Sumatra to state-owned
utility PT Perusahaan Listrik Negara (PLN).

The company will start supplying 87.4 trillion British thermal
units of natural gas from the field in South Sumatra province at
an average price of US$2.97 per million British thermal units,
Kardaya Warnika, chairman of the upstream oil and gas regulatory
body (BP Migas), said in a text message from Surabaya, where the
agreement was signed.

The gas supplied by Jakarta-based Medco will fuel PLN's power
plant in South Sumatra, Kardaya said. The state utility said last
month it needs to invest $16 billion on new generation capacity
over the next 10 years to help avoid shortages.

Demand for electricity in Indonesia is expected to outstrip
supply this year. The country needs at least 47 new power plants
and 14 high-voltage transmission lines to meet demand in the next
10 years, according to forecasts by PLN. -- Bloomberg