PGN seeks additional gas supply from Amerada Hess

The East Java branch of state owned gas distribution company PT PGN is seeking an additional gas supply of about 50 million standard cubic feet per day (MMSCFD) from gas producer Amerada Hess to meet the increase in the gas demand both from households and companies in the province, Bisnis Indonesia reported on Saturday.

PGN's Eastern Java general manager Trijono said in Surabaya on Friday that the new gas supply was needed to meet the growing gas demand, particularly from the company?s existing and new corporate buyers.

At least seven companies including PT Japfa Comfeed, PT Petrowidada, PT Maspion Electronics, PT Cargill, PT Jatim Usaha Industri are now in the waiting list to get gas supply from PGN. These companies need at least 50 MMSCFD.

?We have talked to Amerada Hess and we would sign memorandum of understanding to get 50 MMSCFD. Prices will be negotiated later,? Trijono was quoted as saying.

Amerada Hess is expected to produce more gas from its new gas field in Ujung Pangkah, Gresik by 2005. Petrokimia Gresik said last week that it had also signed an agreement to get additional gas supply from Amerada. (*)