FIPGB agrees to buy gas at higher price

The forum of natural gas users (FIPGB) has agreed to buy gas with a higher price if gas distributor company Perusahaan Gas Negara (PGN) increases the price next year, the forum?s chairman Achmad Widjaja said.

Achmad said in Jakarta on Tuesday that the forum is still waiting for the realization of the government?s commitment to increase gas supply to the forum?s members which are mostly comprised of industrial users.

He said that the total gas supply received by the industrial users totaled only 567 million standard cubic feet per day (mmscfd) or only about 65.3 percent of the gas supply of 686 mmscfd pledged by the government in 2011.

"By the end of this year, 40 percent of our gas needs are not fulfilled,? he said, adding that for 2012, the government promised to provide gas supply of 867 mmscfd to industrial users excluding PLN. ?The government also promised to provide about 85 and 90 percent of the promised gas supply,? he added.

At present, the industrial users buy gas from PGN at US$6.5 per mmbtu.

?Early November, PGN and Santos increased gas price to $8.8 per mmbtu for East Java,? he said, adding that the forum?s members would be ready to buy gas at higher price if PGN has to increase the price for the greater Jakarta area next year. (giok)