Pertamina expects to seal gas supply agreement to West Java within months

State oil and gas company Pertamina expected to be able to seal gas sales and supply agreement (GSSA) with state gas distribution company PGN within the next few months. The gas supply agreement, said Pertamina called for supply of up to 250 million standard cubic feet per day (MMCFD) of gas from its gas fields in South Sumatra to West Java starting 2005 through PGN?s pipeline.

Pertamina?s deputy director upstream Eteng Salam told reporters that gas would be priced between US$ 2 to US$ 2.23 per million british thermal unit (MMBTU) at Pertamina?s wellhead.

PGN had secured financing to construct gas pipeline from South Sumatra to Western part of Java in a bid to anticipate increasing gas demand in the industrial provinces of Java. The construction is planned to commence next year. (alex)