PGN suffers shortage of gas supply

Friday, February 12 2010 - 02:29 AM WIB

State gas distributor Perusahaan Gas Negara PT Perusahaan Gas Negara (PGN) has suffered a serious shortage of gas supply to meet surging demand from its customers, the company?s top executive has said.

PGN?s President Director Hendi Priyo Santoso said in Jakarta on Thursday that the company had a gas deficit of about 297 Million Standard Cubic Feet per Day (MMSCFD) to meet the demand from hundreds of its customers in West Java, East Java and Northern part of Sumatra.

He said that at least 342 customers in West Java, 181 customers in East Java and 124 customers in Northern part of Sumatra could not receive gas from PGN due to the supply shortage. ?It means as many as 647 customers are unable to receive gas from PGN,? he added.

According to Hendi, the company has gas a supply deficit of 145 MMSCFD for West Java, 90 MMSCFD for East Java and 62 MMSCFD for Northern part of Sumatra.

At present PGN relies heavily on gas producers to supply its customers because the company has no gas fields to meet the demand. As the consequence, the company is unable to guarantee the continuity of its gas supply to its customers.

?Many customers often complained about the uncertainty in the gas supply,? he said.

Hendi said that in order to increase the gas supply, the company plans to purchase 335 MMSCFD of additional gas supply from three newly operated gas fields including ConocoPhillips-Suban III for 200 MMSCFD, JOB Pertamina-Talisman Jambi for 35 MMSCFD and Kangean Energy Indonesia (KEI)-Terang Sirasun Batur for 100 MMSCFD.

?In order to be able to get additional gas supply from three new fields, PGN needs support from the Energy and Mineral Resources Ministry,? he said. (godang/beranrd)

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