A director at Indonesia's Mining and Energy Ministry, Indriyana Chaidir, revealed that "PLN will pay US$2.65 per million British thermal units for the gas, less than the US$3.10 it pays under the existing 20-year supply contract that expires [on 31 December]."
This news comes as a relief as the country is currently facing a US$2 billion-a-year shortage in investments in utility essentials like generators and power lines. Such shortages have led to a number of blackouts this month alone.
A spokesperson from PLN added, "We need to invest in 47 power plants and 14 high-voltage transmission lines nationwide to meet demand in the next decade." Aside from the BP deal, the utility is also in negotiation with Exspan Indonesia for a 10-year contract for 13 million cubic feet of gas per day at US$2.60 per million British thermal units.
