Indonesian electricity firm to buy gas from China

Indonesia's state-run electricity company PT Perusahaan Listrik Negara (PLN) will sign an agreement on gas supply with China National Oil Offshore Corporation (CNOOC) for PLN's power plant in Cilegon, West Java province.

CNOOC will supply the gas-fired power plant with up to 100 million cubic feet of gas per day for a 15-year term starting in 2005, PLN executive Ali Herman Ibrahim said at the parliament Wednesday in Jakarta.

"The agreement will be signed here on Dec. 12," he said.

He said the agreed price was 2.67 US dollars per million metric British thermal unit (MMBTU).

On the same date, the PLN also will sign gas supply deal with US energy firm Amerada Hess Corp. for a supply of 100 million cubic feet of gas per day within 15 years beginning in 2006.

The supply from Amerada will be used by a PLN power plant in Gresik, East Java.

Ali said the price of Amerada gas was agreed at 2.55 dollars per MMBTU.