ConocoPhillips in talks to supply gas to Krakatau Steel

US oil firm ConocoPhillips is in talks to supply gas from its South Sumatra?s Corridor gas block to state steel maker PT. Krakatau Steel, a steel maker official said.

?Talks are still at preliminary stage,? said the official.

The official said that the gas would be needed, as current gas supplier PT. Pertamina may not be able to extend gas supply for Krakatau Steel after it expired in 2008. The company had signed heads of agreement with Medco Energi Internasional to supply up to 100 MMCFD of gas from the latter?s Lematang gas fields in South Sumatra, but apparently, the official said, the talks died down as Medco?s gas reserves from the fields would not be able to fulfill the supply.

Krakatau Steel?s steell mills are located in Cilegon, Banten province. Gas supply from South Sumatra would be transported trough pipeline grids that are being developed by state gas distribution firm PGN. (alex)