PGN and Petronas sign cooperation agreement

State gas distribution company PGN has signed an agreement with Malaysian oil and gas company Petronas to explore cooperation opportunities in gas related business, PGN said in its press statement.

The signing of the cooperation agreement was part of PGN?s new business strategy to expand ?beyond pipeline? business in cooperation with a reputable company with a global experience.

Meanwhile, in order to support its gas distribution business, especially in fulfilling surging demand in East Java PGN has also signed a Head of Agreement (HoA) with PT Indogas Kriya Dwiguna on the utilization of gas from the Lapangan Terang Sirasun Batur gas field which is operated by Kangean Energi Indonesia, Ltd (?Kangean?).

Gas production of 20 billion British thermal unit per day (btud) which will be started on January 31, 2012 will be transmitted through the East Java Gas Pipeline (EJGP), which is operated by PT Pertamina Gas (Pertagas), to a receiving station in Waru, Jawa Timur.

The cooperation agreement is part of PGN?s business approaches to cope with the decline in the gas supply from the Maleo gas field. Due to natural depletion, the gas production in the field will decline from 122 Bbtud to 110 Bbtud in July 2011 and further decline to 100 Bbtud beginning January 2012. (romel)