PEP, PGN in gas supply negotiation
Tuesday, May 7 2013 - 09:00 AM WIB
Upstream authority SKK Migas is awaiting the ongoing negotiation between PT Pertamina EP (PEP) and gas distributor PT Perusahaan Gas Negara (PGN) on the supply of gas from South Sumatra to PGN?s buyers in West Java.
?It?s an issue of contract extension. The new terms and conditions are being negotiated between the two. It?s not yet completed,? said Deputy of Commercialization Widiyawan Prawiraatmadja to petromindo.com.
Petromindo.com reported earlier that PEP has decided to discontinue the supply of 26 mmscfd of gas to PGN specifically for delivery to Serpong, in Banten, and Sunyaragi, in West Java, allowing it to only deliver some 72 percent of its contractual obligation.
Widiyawan said that SKK Migas expects the negotiation to be concluded soon to provide certainty to customers.
Editing by Dadan Wijaksana