PGN, ConocoPhillips in Sumatra gas deal

JSX-listed state gas distribution firm PGN announced on Tuesday it had signed Gas Sales Purchase Agreement (GSA) with ConocoPhillips for additional gas supply from the latter to Jambi and Riau area, including Batam island.

Under the GSA, ConocoPhillips will supply gas from its Corridor Block PSC in Southern part of Sumatra for 2 years through PGN’s existing pipelines. “The volume of the gas supply would depend on capacity availability of Grissik-Duri and Grissik-Singapore pipelines,” Heri Yusuf, PGN’s Corporate Secretary said in a release.

PGN’s President Soetikno told Petromindo.Com that the volume supplied would likely be hovering around 40MMCFD and PGN would pay US$3.85 per MMBTU.

ConocoPhillips is using PGN’s pipelines to supply gas from Corridor block to Chevron’s crude production facility in Duri, Riau and to Singapore through Batam island.

Elsewhere, PGN also announced it had clinched a $476,000 grant from US Trade and Development Agency (USTDA) in terms of technical aid to help PGN develop coal-bed methane potential in Indonesia. (godang)