ConocoPhillips, PGN close to sign Batam gas supply deal
Wednesday, March 3 2004 - 11:30 PM WIB
US oil company ConocoPhillips and state gas distribution firm PT PGN Tbk are in the process of finalizing gas sales agreement from the former’s Suban gas field in South Sumatra to the industrial island of Batam, a BP Migas official said.
“The deal is expected to be sealed very soon as both parties had actually concluded negotiation about pricing,” said BP Migas vice-chairman Kardaya Warnika on Wednesday.
Natural gas will be transported using PGN's South Sumatra-Singapore pipeline grid.
PGN will sell the gas to Batam industrial users as well as to state electricity firm PLN.
The volume of the contracted gas is 300 BCF at the flow of around 65 MMCFD, starting this year or next year. (godang)