Independent power producer PT Energi Listrik Batam (ELB), which operates a 2x35 gas power plant on Batam Island, had on 22 April signed a heads of agreement (HOA) with Jindi South Jambi Co Ltd, operator of the South Jambi B block.
Under the HOA, Jindi agreed to fulfill gas requirement of ELB's power plant in Batam for 20 years commencing from the fourth quarter of 2020 with price of US$5.85 per mmbtu, said IDX-listed PT Medco Energi Internasional Tbk, which indirectly owns ELB, in a recent statement.
Read also : PLN Batam secures additional gas supply from PetroChina
The signing of the HOA followed a letter from PT PLN Batam dated 18 March to ELB related to gas supply, in which PLN Batam agreed to a proposed maximum gas price of $6.00 per mmbtu for 20 years commencing from fourth quarter in 2020 with volume of 4.5-18 bbtud, Medco said.
Editing by Reiner Simanjuntak
