PGN sets quota for gas sales to industries
Monday, August 8 2005 - 03:09 AM WIB
PT PGN's spokesman Agus Dihardjo said in Jakarta on Saturday that gas supply to the company had declined sharply to about 80 million standard cubic feet per day (MMSCFD) in recent months from 120 MMSCFD previously due to the decline in the production of the gas providers in West Java and East Java.
The gas supplies from the gas fields in West Java operated by state oil and gas company Pertamina and BP West Java had, for example, continued to decline in recent months, Agus said.
The decline in the gas supply from PGN has seriously affected the operation of a number of industries both in West Java and East Java. Many of them including ceramic producers have been forced to use diesel oil due to the lack of the gas supply.
Ceramic producers have complained that some of them have to halt their activities because of it.
Agus said that besides the decline in the gas production, the shortage of the gas supply also was also caused by the increase in the use of gas by the company's industrial users in recent months. Many industries have converted to gas due to the sharp increase in fuel prices.
"As the result, beginning Aug. 1, industries received only about 75 percent of their needs. Those using gas above their quota will be fined with higher tariff," he was quoted as saying.
He hoped that the shortage of the gas supply could be coped when the South Sumatra-West Java gas pipeline which is now under construction began commercial production in October 2006.
The inter-island gas pipeline, which will have a capacity to transmit 520 MMSCFD from South Sumatra to West Java, will get gas supply from Pertamina and Conoco, which operates massive gas fields in the province. (*)