PGN lifts quota on gas for East Java
Monday, October 2 2006 - 02:38 AM WIB
PGN?s corporate secretary Widyatmoko Bapang said in Jakarta Sunday that the gas quota imposed on industry that utilized gas from PGN would be lifted. ?Now the industry can use 100 percent gas in accordance with the existing contract,? he said.
The need of gas for industry in East Java reaches as much as 145 million up to 150 million cubic feet per day. Due to the declining supply of gas from several fields, PGN set a quota on gas since August of this year.
?With the entry of gas from Maleo field which reaches as much as 100 up to 110 million cubit feet per day, PGN has sufficient supply of gas to meet the gas needs for industry from customers that have signed a contract,? he said.
The lifting of the gas quota would automatically lead gas sale price for industry in East Java to return to the market price - from the previous US$4.5 per MMBTU to $5 per MMBTU.
Widyatmoko said that the additional gas supply from Santos would enable PGN to expand its market coverage. ?As many as 48 companies that have expressed their interest in buying gas from PGN, with several of them preparing for the installation of the connecting pipes following the signing of the purchase and sale agreement,? he said.
Meanwhile, PGN?s president director W.M.P Simandjuntak said that the supply of gas to industry in East Java from Santos was estimated to save the use of fuels as much as 6.75 million kiloliters.
He said that total volume of gas to be channeled reaches 243 billion cubic feet for between eight and 12 years, with contract value reaching US$550 million. (godang)