Negotiation between PGN and ceramic producers over gas supply fails

Negotiations between state owned gas distribution gas company PGN and the association of ceramic producers (Asaki) have failed to reach any agreement because PGN refused to guarantee that it would provide the gas supply according to the volume and pressure stated in the contracts, Bisnis Indonesia reported Friday.

The secretary general of the association, Zulfikar Lukman, said in Jakarta early this week that PGN refused to guarantee the gas supply on grounds that the volume of gas it supplied was determined by the availability of gas at producer levels.

"PGN will only able to guarantee the gas supply for those using more than 9 million cubic feet per month. It means that only Mulia Ceramics can receive a supply guarantee, because other producers using less than 9 million cubic feet per month," he added.

He said that the association wanted PGN to provide equal treatment to other ceramic producers so that the contracts would not only benefit PGN and certain members in the association.

According to him, the contract is not fair, because the association's members will not be given compensation if the gas supply they receive lower than the volume and pressure stated in the contract. (*)