PGN sets lower sales target

State gas distributor PT Perusahaan Gas Negara (PGN) has set its gas sales at between 780 and 820 mmscfd this year, down from its target last year which stood at 824 mmscfd.

The company?s Commercial Director & COO, Michael Baskoro, said the decline was resulted from the falling production of Pagar Dewa gas field operated by state oil and gas company PT Pertamina (Persero) and the failure of ConocoPhillips to meet its production target of 295 mmscfd.

Michael said gas selling price between January and May was stable at an average of US$6.58 /mmbtu. ?We last increased the price in April 2010 from $5.6/mmbtu. So far we have no plan to raise the price,? he said.

The company sold 98% of its total product amounting to 807 mmscfd to the industry and contributed Rp 3,778 billion (1US$ = Rp8,500) to state revenue last year, which also included fee to BPMigas, tax and dividend to the government. (giok)