BNI provides US$140m non-cash loan facility to PGN

State bank PT Bank Negara Indonesia Tbk (BNI) has provided a facility of non-cash loan of US$ 140 million to state gas distributor PT Perusahaan Gas Negara Tbk (PGN).

BNI Director Krishna R Suprapto said the non-cash loan facility will be used by PGN and its subsidiaries as a guarantee for gas purchase and future projects. The facility will be effective for a year, and can be extended next year. It is expected that the loan will help secure its gas supply.

"We?ll continue to support the development of oil and gas industry in this country, particularly for companies like PGN,? he said on Wednesday.

PGN Finance Director M Riza Pahlevi Tabrani noted that the loan would be used as a guarantee for domestic gas need, which is expected to be higher next year.

"Until September, our gas supply reached 800 mmscfd. Hopefully, this loan will meet our operational need,? he said without giving any further details.

Editing by Benget Besalicto Tnb