Pertagas Niaga, Lapindo sign gas supply agreement
Wednesday, December 14 2016 - 12:38 AM WIB
Gas trading company PT Pertagas Niaga signed on Monday gas sales and purchase agreement with PT Lapindo Brantas Inc, under which the latter will supply 560 mmscf per year of gas from the Taunggulangin gas field in Sidoarjo, East Java, to the former, which will distribute the gas to industries in the province.
The agreement was signed by Pertagas Niaga President Director Linda Sunarti and Lapindo Brantas President Director Muhamad Husein.
?Gas from Lapindo will start on stream from January 2017 until April 2020. This is in anticipation of declining gas production from the Pagerungan field, Kangean. On the other hand, we predict gas demand from industries in East Java will continue to expand, and it must be fulfilled by us,? Linda said.
Lapindo has previously supplied gas to 10,350 gas consumers in Sidoarjo Regency through the inner city gas network operated by Pertagas Niaga utilizing the East Java Gas Pipeline owned by PT Pertamina Gas, the parent of Pertgas Niaga.
Aside from Lapindo, Pertagas Niaga is also seeking for gas supply from Husky-CNOOC Madura Limited next year, also dedicated for industries.
Pertagas Niaga currently supplies gas for industries including ceramics, steel and compressed natural gas. It plans to provide gas for independent power products in East Java.
Editing by Reiner Simanjuntak