East Java still needs 120 MMCFD of gas to meet demand

East Java still needs about 120 million cubic feet of gas a day (MMCFD) to meet the growing gas demand from both households and corporate buyers in the province, the general manager of the East Java office of the state owned gas distribution company PT PGN, Trijono.

Trijono told Kompas daily that the gas demand in the province had reached a total of 420 MMCFD but the local gas producers could only supply about 300 MMCFD. "We still needs some 120 MMCFD more to meet the all demand," he said.

According to him, the lack of the gas supply threatened the existence of small and medium-scale companies in the province which at present still rely heavily on fuel to operate their factories. "In the long run, such companies would no longer be able to compete with their rivals in other provinces which have mostly used gas as their fuel," he added.

He said that the price of fuel was about Rp 2,100 per liter at present, far higher than about Rp 1,050 for equivalent volume of gas.

At present, the gas in the province is supplied by BP Kangean, Lapindo Brantas, and Kodeco Energi but the decline in the gas reserves in their gas fields have forced them to reduce the gas supply to PGN, which then distributes the gas to its customers. (*)