PGN claims to be able to fulfill gas demand in East Java
Tuesday, June 19 2012 - 02:54 AM WIB
State-controlled gas distribution company PGN said that its industrial customers in East Java starting June 2012 will be able to gradually enjoy gas supply in volume as set out in the contract.
PGN said in a statement that the company has started to enjoy additional gas supply from the gas producers following improving investment climate in the upstream sector mainly marked by the upward adjustment in the price of gas sold to PGN since mid of 2011.
Per June 2012, PGN?s gas supply volume for industrial customers in East Java stood at 150 mmscfd, the company said on Monday.
PGN sees gas demand in East Java will continue to rise until end of 2013, at a time when the gas supply volume contract will reach 180 mmscfd.
PGN?s Strategic Business Unit II, which caters the East Java market, currently serves more than 12,000 customers, which includes about 350 industrial customers. By July 2012, the industrial customers in the province is projected to rise by more than 15 percent to 414 customers.
The PGN statement came amid growing protest from industrial customers over the recent move by PGN to pass on to customers the rising cost burden of the increase in the gas price charged by the upstream producers. Protest among others come from customers in the main industrial-province of West Java.
PGN President Director Hendi Prio Santoso hopes that the ongoing positive development enjoyed by its customers in East Java could also be enjoyed by customers in West Java.
Hendi reiterated that an environment by which upstream gas producers have been able to raise its gas selling price has improved the gas supply prospect for PGN. But he added that the company could not solely shoulder the increasing cost burden, meaning that it must also raise its selling price.
Hendi said that before raising its selling price, PGN had already consulted it with its customers. He described the recent price hike as ?affordable and normal.?
Editing by Reiner Simanjuntak