PGN agrees to raise price of Corridor?s gas
Wednesday, May 2 2012 - 07:39 AM WIB
State owned gas distributor PT Perusahaan Gas Negara Tbk (PGN) has finally agreed to raise the price of gas from the Corridor block in central Sumatra, operated by American firm ConocoPhillips, upstream authority BPMIGAS said on Wednesday.
?At present, PGN pays US$1.85 (per mmbtu) for the gas. The price increase is good enough,? BPMIGAS? chief spokesman I Gde Pradnyana said, without the specifying the new price.
He said PGN and ConocoPhillips will sign the agreement on the new price on Thursday (tomorrow) in a ceremony where several gas contracts will also be signed.
The supply from the Corridor block is covered by two agreements, involving the supply of gas to West Java and Batam respectively. Under the contract to supply gas to West Java, the block supplies PGN with 373.5 mmbtud of gas at a price of $1.85 per mmbtu for 15 years from 2008 through 2023. Meanwhile, the contract to supply gas to Batam, also effective for 15 years from 2008 through 2023, involves the supply of 68.2 mmbutd at a price of $2.4 per mmbtu.
Editing by Johannes Simbolon