PGN increases gas price to customers by 50%
Tuesday, May 15 2012 - 02:59 AM WIB
State owned gas distributor PT PGN has increased the price of gas it distributes to western part of Java, including Jakarta and Banten, by 50 percent following a recent agreement rising the prices of gas it buys from the Grissik and Pagar Dewa fields in South Sumatra.
PGN Director of Investment and Risk Management Wahid Sutopo confirmed that the increase in selling price was pegged at 50 percent for PGN SBU 1, which covers western part of Java and South Sumatra, despite a more than 200 percent rise in the gas price it buys from the two fields.
The price of gas from the Grissik field at the Corridor block in South Sumatera, operated by US-based ConocoPhillips, has been increased to $5.6 per million British thermal unit (mmbtu) from $1.85. The price will be increased further to $6.5 per mmbtu in 2014.
The gas from the Pagardewa field in South Sumatera, operated by Pertamina EP, has also been increased to $5.5 per mmbtu from only $2.2 per mmbtu. The price will also be increased to $6 per mmbtu in 2013.
Gas from the two fields are distributed to PGN?s customers in Banten, West Java and Jakarta through the South Sumatera-West Java gas pipeline.
Editing by Dadan Wijaksana