U.S. oil major ConocoPhillips has reached an agreement with Indonesian state electricity firm PT Perusahaan Listrik Negara (PLN) on the amount it will charge for gas.

The price on average will be $2.69 per million British Thermal Units," said Kardaya Warnika, vice chairman at state oil and gas watchdog BP Migas. ConocoPhillips signed a memorandum of understanding last year to supply 400 million cubic feet per day of natural gas from a field in South Sumatra to a PLN power plant in West Java. The signing of the final gas agreement was expected next month, together with the signing of a gas transportation agreement between ConocoPhillips and PGN, added Warnika.

The gas will be delivered through a pipeline that will be built by Indonesian gas distribution firm PT Perusahaan Gas Negara (PGN) in 2006. PGN earlier agreed the price of gas transportation with ConocoPhillips at 84 cents per million British thermal units.

(mma)