PGN, Pertamina sign MoU to supply more S.Sumatra gas to W. Java

State gas distribution company PGN said it had signed a memorandum of understanding (MoU) with state oil and gas company Pertamina on which the latter will supply additional 250 MMCFD of natural gas from its South Sumatra gas fields to West Java through PGN?s pipeline starting around 2008, a PGN official said.

PGN president WMP Simanjuntak said that the realization of the supply agreement would enable the company to transport around 1TCF of natural gas from South Sumatra to gas-hungry provinces of western part of Java by 2010.

PGN had earlier signed gas sales and purchase agreement with Pertamina, in which Pertamina would supply up to 250 MMCFD of natural gas to West Java starting 2007, when PGN?s South Sumatra-West Java gas pipeline grid is scheduled to be completed.

US oil company ConocoPhillips will also supply 400 MMCFD of natural gas to West java from its Corridor gas block in South Sumatra using PGN?s pipeline.(alex)