PGN?s gas distribution below target

State gas distributor PT Perusahaan Gas Negara (PGN) said that its gas sale volume for the first semester of 2007 slightly increased compared to the last year's period.

 

PGN’s corporate secretary Hery Yusup said in Jakarta on Friday that its sale volume as of June 2007 reached 389 million cubic feet (MMSCFD) or a 17 percent increase compared to the sales volume in the same period last year.

 

Hery said that the gas distribution through the South Sumatra – West Java (SSWJ) gas transmission network only reached 130 MMSCFD as of August of this year, which was below the company’s target of between 150 and 177 MMSCFD.

 

With the operation of the SSWJ transmission pipeline network, PGN has started to carry out its obligation to pay the funds earmarked for the project, which led to a decline in its profit.

 

The increase in the gas price set by state oil and gas firm PT Pertamina through which the PGN received the gas has also contributed to the decline in the company’s profit.

 

PGN booked a revenue of Rp 3.8 trillion for the first semester of 2007, or an increase by Rp 473 billion compared to the same period of 2006. It recorded a net earning of Rp 1.389 trillion and a net profit of Rp 1 trillion. (godang)