Lapindo raises gas price to US$2.6 per MMBTU

Sidoardjo, East Java-based gas field operator PT Lapindo Brantas will increase the price of its gas sold to the branch of state owned gas distribution company PT PGN in East Java to US$2.6 per million metric British thermal unit (MMBTU) from US$2.53 per MMBTU beginning February, next year, Bisnis Indonesia reported on Saturday.

Trijono, the general manager of PGN?s East Java office, confirmed on Friday about the planned increase in the gas price, saying that the price increase would be part of Lapindo?s commitment to increase the gas supply by six million metric square cubic feet per day (MMSCFD) to 70 MMSCFD beginning January to PGN.

?We have agreed the price increase that will begin effective on January. The sale price to our customers will not be raised but they will be charged with additional fee of Rp280 per MMBTU of gas sold to them,? he said.

In addition to PT Lapindo, another East Java-based gas producer PT BP Kangean will increase its gas supply to 43 MMSCFD also beginning February from 35 MMSCFD at present. But he declined to unveil the price.

The contract on the gas purchase from Lapindo would end in 2005. This will result in the possible sharp increase in the price of sale prices of PGN, which is now about Rp 1,070 per equivalent litter, much lower compared to diesel fuel which is now sold at Rp 1,850 per litter. (*)