PGN, Banten province sign MOU for gas distribution

State-owned gas transmission and distribution PT Perusahaan Gas Negara Tbk said Thursday it had signed a Memorandum of Understanding (MOU) with the Banten provincial government to speed up the utilization of natural gas in the province.

PGN said in a statement that the memorandum would enable the provincial, through its local-state enterprise, to jointly distribute gas to be supplied from South Sumatra to industrial costumers operating in the province.

This cooperation would also reduce PGN’s size of investment required to construct the pipeline networks in the area, PGN said.

PGN added it had signed similar agreements with Jambi, Riau, and North Sumatra provincial governments.

PGN is constructing pipelines connecting Sumatra and Java islands in order to support higher demand for natural gas in West Java. The first gas supply through the first phase of pipelines project is anticipated to start in 2006.

According to the statement, as of March 2005, PGN has marketed about 70 percent or about 445 million cubic feet per day of total capacity gas to be supplied from South Sumatra to new customers in West Java.

PGN also said about 200 other companies were on a waiting list. (godang)