Pertagas, SK E&S sign agreement on gas distribution business

By Bernard Loebs

PT Pertagas, a gas distribution subsidiary of state owned oil and gas firm PT Pertamina, said it has signed a memorandum of agreement (MoA) with SK E&S from South Korea to embark on gas distribution business in Central Java area and overseas.

Preliminary agreement was reached in 2010 and followed by the establishment of joint study to explore gas distribution business in Central Java. So far, they have received demand for gas from Sango and Tossa firms with gas volume of 7.5 mmscfd.

Pertagas and its partner hope to distribute gas to consumers in Central Java from the planned Floating Storage Regasification Unit (FSRU) Central Java to be built by Pertamina.

Pertamina still pins its hope that its plan to develop the Central Java FSRU is approved by the government after State Enterprise Minister Dahlan Iskan made a statement that the government may not approve the FSRU project.

Editing by Roffie Kurniawan