PGN criticized for ?lacking? commitment to boosting domestic use of gas

The government criticized state owned gas distribution company PT Perusahaan Gas Negara (PGN) for lacking commitment to boosting the use of natural gas on the domestic market.

At the inter-ministerial coordination meeting held at the Ministry of Industry on Thursday, Deputy Coordinating Minister of the Economy in charge of energy, mineral resource and forestry affairs Wimpy S Tjejep called on gas suppliers to think about state interests, instead of profit, in boosting the utilization of gas on the domestic market.

He did not name the gas suppliers, but referred to the disagreement between PGN and state electricity company PT Perusahaan Listrik Negara (PGN) over price.

He said the Office of Coordinating Minister of the Economy had helped PLN and PGN reach an agrement for the supply of natural to a power plant owned by PLN in West Java at the price of US$3.5 per MMBTU, but the agreement did not work because PGN demanded a higher price.

?What has happened is that an agreement that has been reached at the Office of Coordinating Minister of the Economy has yet to be implemented. There is a state owned company which prioritizes corporate profit,? he said.

However, PGN?s pesident director Sutikno argued that as a public-listed company, PGN has obligations to shareholders so that the tariff effective for distribution of gas could not be regulated by the government. (Godang)