BPMIGAS still renegotiating Pagardewa gas price to PGN

By Bernard Loebs

Upstream authority BPMIGAS is currently renegotiating gas price to be delivered from Pagardewa area in South Sumatra, operated by PT Pertamina EP, to state gas distributor PT Perusahaan Gas Negara Tbk (PGN).

Spokesperson of BPMIGAS I Gde Pradnyana told Petromindo.com that BPMIGAS seeks to raise the gas price to US$5 per mmbtu from US$2.2 per mmbtu agreed earlier.

Apart from gas from Pagardewa, BPMIGAS is also in the process of renegotiating gas prices from other fields in South Sumatra and other parts of the country. Gde said the average of gas prices realized for domestic market for the period of 2009-2011 stood at a range of US$4 to US$4.5 per mmbtu, which was about 40-50 percent compared to the average of sales prices to overseas markets.

Corporate Secretary of PGN, Heri Yusuf has said PGN was still mulling over price adjustment on gas purchases from a number of gas fields, which have price set at below US$3 per mmbtu.

Editing by Roffie Kurniawan