PEP stops gas supply to PGN in Serpong
Monday, May 6 2013 - 02:30 AM WIB
PT Pertamina EP (PEP), a subsidiary of state-owned oil and gas firm PT Pertamina, has decided to discontinue the supply of 26 mmscfd of gas to gas distribution company PT Perusahaan Gas Negara (PGN) specifically for delivery to Serpong, in Banten, and Sunyaragi, in West Java.
Vice President for Commercial Affairs at PEP, Sigit Wijayandaru, told Petromindo.com Monday that the move was made because the company suffered production shortage in West Java, allowing PEP to only supply about 72 percent of its contractual obligation.
He said that a further supply shortage will occur again in August, when the platform at the L-Parigi field off Java is scheduled for a jack-up, with potential supply loss of 78 mmscfd.
Sigit, however, expects PGN to be able to continue serving its consumers in Banten and West Java as the company continues to get supplies from ConocoPhilips (372 mmscfd), Sumatra via the South Sumatra-West Java pipeline (123 mmscfd), and also from PEP (contract 250 mmscfd).
?So for delivery point at Serpong, PGN still have other (supply) alternatives,? Sigit said.
Meanwhile, Ridha Ababil, Communications Manager at PT PGN, said that the discontinuation of the PEP supply contract to Serpong will surely cut down supply to industrial consumers in the area.
?There are of course other potential sources, but the volume is limited and there is the issue of (distribution) network obstacle, thus hampering PGN to increase supply to the area,? Ridha said, while adding that the disruption of gas supply will affect the operation of manufacturing industries in the region particularly in the eastern part of Banten which employ about 70,000 workers.
Ridha hopes that there will be no more disruption to the already limited gas supply to the region.
Editing by Reiner Simanjuntak