PGN scouts for more gas supply for SSWJ

IDX-listed state gas distribution firm PT. Perusahaan Gas Negara (PGN) said it was still scouting for additional gas supply for its newly completed South Sumatra to West Java (SSWJ) pipeline project.

Corporate Secretary Heri Yusup told Petromindo.Com that the pipeline has capacity to supply 970MMCFD of gas from Sumatra to West Java, but PGN has only long-term supply of 400MMCFD from ConocoPhillips-operated Corridor Block and 250MMCFD from state oil and gas company Pertamina, leaving the pipeline with 320MMCFD of spare capacity.

?PGN is looking to buy more gas from gas suppliers along the pipeline project. PGN also welcomes to transmit gas for third party for a toll fee,? Yusup said.

Business Development Director Bambang Banyudoyo said PGN is now in talks with several producers to get additional gas supply for the pipeline. He did not disclose any detail, but the company?s presentation published last week revealed that it had signed HoA for gas supply with ConocoPhillips.

Meanwhile, Hari Pratoyo, PGN?s GM SBU Java said PLN will pay toll fee to send 50MMCFD of gas from Lematang PSC through SSWJ to PLN?s power plant inWest Java. He did not say when Lematang gas transmission would start. (godang)