A unit of France's Total (TOTF.PA) has signed a deal to supply an Indonesian power plant belonging to a district company in East Kalimantan province, an official at the regional company said on Wednesday.
Under the agreement, Total will supply a regional electricity and energy resources company, owned by Kutai Kartanegara district, with 20 million cubic feet per day of gas for 20 years, said the official who declined to be identified.
The gas would be used to generate 80 megawatts of electricity at the power plant, the official said, adding the plant would cost around $100 million to build.
"The power plant will be constructed this year and is expected to be operational in 2011," the official added.
A Total official also confirmed the deal and said the agreement was signed last week.
Total and Japan's Inpex (1605.T) each hold 50 percent in the Mahakam block, which supplies most of the gas for Indonesia's Bontang liquefied natural gas plant is in East Kalimantan on Borneo island.
The Mahakam block also supplies gas to domestic companies, including to fertiliser firms.
http://www.reuters.com/article/rbssIntegratedOilGas/idUSJAK48162320090701
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