PGN cuts 2007 gas sales estimate by 18.3%

State gas distributor PT Perusahaan Gas Negara (PGN) said on Friday that its gas sales might be 18.3 percent less than its estimate for this year due to delays in its South Sumata – West Java (SSWJ) pipeline project, The Jakarta Post reported on Saturday. 

 

PGN’s president director Sutikno said that the gas sales might only reach an average of 453 million cubic feet per day (MMCFD) compared with its previous estimate of 555 MMCFD.

 

The lower estimation reflects the delayed completion of 196-km gas pipeline linking ConocoPhillips’ Grissik gas field to Pagardewa to October 2007 from the previously expected date of March 2007.

 

Sutikno also said the delay would result in a drop in next year’s estimated gas sales of 22 percent to 716 MMCFD from the company’s earlier forecast of 919 MMCFD.

 

Based on its contract, PGN will deliver up to 250 MMCFD from Pagardewa and 400 MMCFD from Grissik when pipelines are operating at full capacity.

 

The Grissik-Pagardewa pipeline is part of PGN's two gas pipelines linking Pagardewa in South Sumatra, to Cilegon in Banten, and to Pagardewa and Muara Bekasi in West Java. The first section to Cilegon has begun operation early this year, while the second section to Muara Bekasi is initially scheduled for operation in July. (*)