Pertamina, PGN sign gas agreement

PT Pertamina Gas (Pertagas), a subsidiary of state owned oil and gas firm PT Pertamina (Persero), signed on Tuesday a Gas Sales and Purchasing Agreement (GSPA) with state owned gas distributor PT Perusahaan Gas Negara (PGN).

Under the GSPA, Pertagas will supply gas from Arun Storage & Regassification Terminal in Aceh to be distributed by PGN to industrial areas in North Sumatra, Pertamina said in a statement on Tuesday, without specifying the industrial areas.

The gas will be first delivered from Arun to Belawan in North Sumatra through pipelines and then forwarded to the industrial areas through the Belawan-KIM-KEK Sei Mengkei pipeline now under construction by Pertagas. KIM or Kawasan Industri Medan is an industrial area in North Sumatra?s capital of Medan, while KEK (Kawasan Ekonomi Khusus) Sei Mengkei is an industrial zone outside Medan.

Editing by Johannes Simbolon