Gas scarcity to continue in Banten and West Java: PGN

Monday, May 14 2007 - 02:05 AM WIB

State-owned gas distribution and transmission company PT Perusahaan Gas Negara (PGN) said that the shortage of gas supply to ceramics industry in West Java and Banten will continue until  the next 40 days due to the decreasing gas supply from state oil and gas company PT Pertamina, Kontan daily reported Monday.

PGN's president Sutikno said the company had since last week received only 60 – 65 MMSCFD from Pertamina, far below the agreed gas supply at 98 MMSCFD.

“PGN supplied gas to ceramics industry on Saturday and Sunday (May 12 and 13) but only at limited amount. According to Pertamina, the reason is because the gas supply from its sources has declined,” he said.

Sutikno said as a solution, the company would soon shift the gas allocated for state owned steel producer PT Krakatau Steel to the ceramic producers. But, it could not be realized soon as it took 40 days to install facilities to enable the "swap", he said.

PGN expects the gas shortage problem will be solved once PGN is able to supply gas from Sumatra . If the pipeline from Pagardewa and Grissik in South Sumatra to West Java is operated, gas supply to the industries in West Java and Banten will increase by 170 – 250 MMSCFD

Most ceremic producers in the two provinces have been facing difficulties to continue operations due to shortage of gas from PGN. Ceramics producers affected by the shortage of gas supply include Roman Keramik / PT Satyaraya Kramindo Indah, PT Surya Toto , PT Industri Keramik Angsa Daya ( IKAD), PT Arwana Citramulia and Royal Doulton. (*)

 

 

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