Indonesia’s Pertamina has signed a 30-year supply deal with the state electricity company PLN for gas from the Jambaran-Tiung Biru field in East Java, according to NASDAQ.
Pertamina has agreed to sell 2.8 million cubic metres per day of gas to PLN at a price of $7.60/MMBtu, $6.70 of which constitutes the cost of the gas while $0.90 covers pipeline transmission.
The high cost of the gas is a result of the level of sulphur and other impurities, which require significant processing to remove.
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