BPH Migas rejects PGN statement

Downstream Oil and Gas Regulatory Authority BPH Migas has repudiated the statement made by gas utility PT Perusahaan Gas Negara (PGN) that BPH Migas will auction gas distribution network right in areas where PGN has its own distribution points, Bisnis Indonesia reported Friday.

BPH Migas chairman Tubagus Haryono said his office had never said anything about the auction in the media or its website.

?I don?t know from where PGN got this information. But just now I settled the matter with Pak Simandjuntak (PGN president director W.M.P. Simandjuntak)," Tubagus said in Jakarta on Thursday.

He added that BPH Migas will only auction gas transmission and distribution networks which are already in the main plan.

?If they are not in the main plan, they can?t be auctioned. East Java was included but PGN has special rights in several areas and so we don?t want to touch them,? he said.

Recently Simandjuntak apposed in a press release BPH Migas? plans to auction gas distribution areas where PGN is already operating. (*)