PGN starts gas distribution to industries in Lampung

State-controlled gas distribution company PT PGN Tbk started this month supplying gas to three companies in Lampung as part of a gas sales and purchase agreements signed in the middle of last year with 14 industries.

PGN Corporate Secretary Heri Yusuf said in a statement Sunday that the three companies which have received gas from PGN since early this month included PT Nestle Indonesia, PT Coca Cola Amatil Indonesia, and PT Philips Seafood.

He said that 11 other companies will also start to receive gas soon from PGN?s floating storage and regasification unit in Lampung.

Heri said that the gas distribution to the large industries in Lampung was made following the completion of distribution a 90 Km pipeline linking Labuan Maringgai and Tanjung Panjang. PGN has also completed two offtake stations in Sutami and Sekampung Udik.

Heri said that the total gas volume currently distributed to the industrial customers stands at around 1.01 bbtud.

Meanwhile, Factory Manager of PT Nestle Indonesia Plant Panjang in Lampung, Budi Utomo welcomes the gas supply from PGN, saying that gas provides various benefits including an expected 25 cost reduction until end of the year. PT Nestle has signed a five year gas sales and purchase agreement with PGN, under which the company will require 172,800 cubic meters of gas per month.

Elsewhere, PGN said in the statement that is was also committed to provide gas to household consumers and small-medium scale industires in Lampung.

PGN is also working with state-owned electricity company PT PLN to provide gas to a number of power plants in Lampung. PGN plans to distribute gas to a number of delivery points where power plants will be built including GI Sribawono 100 MW, GI Sutami 30 MW, GI Sutami 100 MW, GI New Tarahan 30 MW, with total gas requirement of about 45 bbtud.

Editing by Reiner Simanjuntak