PGN plans to cut capex next year

State gas distribution company, PT Perusahaan Gas Negara Tbk (PGN), plans to slash capital expenditure next year due to an absence of new projects, a senior company official said.

PGN's finance director Djoko Darmono told reporters late on Tuesday that the company's capital expenditure would fall to around $200-$300 million in 2007 from nine trillion rupiah ($983.5 million) this year.

"The decline in capital expenditure is because we don't have new projects, we will just continue with what we have," Darmono said.

He said PGN has received commitments from a number of foreign banks for the financing of the capital spending, which will also be funded partly by cash. (*)