Pertagas, Kangean, Petrokimia Gresik, agree on toll fee hike

PT Pertamina Gas (Pertagas), Kangean Energi Indonesia (KEI) and PT Petrokimia Gresik have reached an agreement on toll fee increase.

The toll fee is charged on gas transported from Pagerungan Field owned by PT KEI through East Java Gas Pipeline (EJGP) owned by Pertagas to Petrokimia Gresik at a new price of US$0.84 per MSCF (million standard cubic feet) as opposed to price set earlier at US$0.36 per MSCF.

The agreement ends a lengthy discussion between Petrokimia Gresik and KEI-Pertagas over toll fee. The agreement means that Pertagas called off its early plan to stop delivering gas to Petrokimia Gresik that could hamper the operation of Petrokimia Gresik?s fertilizer plant.

?There is no problem with gas supply from pagerungan anymore as all parties have agreed over toll fee increase through subsidized mechanism,? Director for Commercial of PT Petrokimia Gresik T. Nogroho Purwanto, was quoted by Investor Daily as saying.(*)