Pertagas signs gas sales, purchase agreement

By Bernard Loebs

PT Pertamina Gas (Pertagas) has recently signed a gas sales and purchase agreement (GSA) with PT Pertamina Hulu Energi WMO, Kodeco Energy Co.Ltd, PT Pertamina Madura Barat and PT Pertamina EP.

President Director of Pertagas Hendroyono said on Monday that under the 14.5-year GSA, Pertagas will buy 100 mmscfd of gas from the four producers, starting December 7, 2016 until May 6, 2031.

He said the gas supply will allow Pertagas to produce 350 tons of LPG per day, thus helping its parent state-owned oil and gas firm PT Pertamina to reduce LPG import. This is expected to provide US$2.3 million per month of revenue for Pertagas.

Editing by Reiner Simanjuntak