Pertagas agrees to supply gas to Sei Mengkei Special Economic Zone

State-owned gas distribution firm PT Pertamina Gas (Pertagas) signed an agreement on Monday with state-owned plantation firm PTPN III, which operates the Sei Mengkei Special Economic Zone (SEZ) in North Sumatra Province, for the supply of gas for upcoming tenants of the SEZ.

Pertamina said in a statement that the agreement will ensure gas supply for the SEZ, thus hopefully would lure new industries to be developed at the zone.

Pertagas is ready to supply the required gas as it has since 2015 developed a 156-km gas transmission pipeline linking Belawan, the Medan Industrial Zone, and the Sei Mengkei SEZ.

The Sei Mengkei SEZ currently covers an area of 1,933.8 hectares, but so far only 212 ha, or 10.96 percent has been utilized by industries.

Elsewhere, the statement said that PTPN III also signed on Monday gas sale and purchase agreement with PT Pertagas Niaga. No details were provided.

Editing by Reiner Simanjuntak