PGN lowers sales volume target by 16.2 percent

State-owned gas distribution company PT Perusahaan Gas Negara (PGN) has lowered this year?s sales volume target by 16.2 percent to 600 million standard cubic per day (MMSCFD) from 716 million MMSCFD due to a delay in the distribution of gas to some of its customers.

The company?s corporate secretary Heri Yusuf said in Jakarta on Tuesday that the sales volume target was lowered because some of its customers were not yet ready to get the gas supply from the company.

Besides, several distribution projects in West Java could not be finished on time, including the distribution project for the Muara Tawar combined cycle power plant in Bekasi owned by state owned electricity company PT Perusahaan Listrik Negara (PLN). Gas supply to the power plant has been delayed until this month.

PGN has signed agreement to supply the power plant with gas beginning May, but PLN has yet to finish the development of pipeline linking PGN's main pipeline to the power plant.

He, however, said that the cut in the sales volume target would not affect the company?s overall financial performances. ?The cut is still within the company?s conservative scenario,? he added.

According to him, despite the reduction, this year?s sales volume would rise by 42.8 percent from those in the previous year. Last year, the company sold an average of 422 million standard cubic per day.

Heri hoped that the gas supply to the power plant could be begun later this month as the construction of the pipeline connecting the power plant was near completion. (godang)