PGN in talks to extend Java gas supply contracts

IDX-listed state gas distribution firm PT PGN (Persero) is finalizing talks with PT Pertamina EP over gas supply contract extension from the latter?s gas fields in West Java.

PGN?s VP for Gas Supply Gamal Imam Santoso told Petromindo.Com over the week-end that current contract will expire in March 2011 and PGN is seeking to extend the contract by another 5 years.

Currently Pertamina EP West Java region supplies 70 MMCFD of gas to PGN under the contract. ?We?re waiting for final approval from Ministry of Energy and Mineral Resources and BPMIGAS,? he said, adding that gas from Pertamina EP is distributed to PGN?s industrial and households customers.

Gamal also said that PGN is also seeking to extend gas supply contract from Kodeco Energy, which operates gas fields offshore East Java. Current contract of 30 MMCFD with Kodeco will expire in December 2011 and PGN is seeking to extend the contract by another 10 years, Gamal said. (godang)