PGN to get gas supply from Kangean Energy East Java fields
Monday, February 6 2012 - 02:16 AM WIB
Gas distributor PT Perusahaan Gas Negara Tbk (PGN) said it will get additional gas supply of 20 million standard cubic feet per day (mmscfd) from Terang, Serasun and Batur gas fields within Kangean block, in East Java this year.
?The Heads of Agreement has been signed,? Heri Yusuf, Corporate Secretary of PGN told Petromindo.com last week. The Kangean block is operated by Kangean Energy Indonesia (KEI) which is a joint venture oil and gas company between PT Energi Mega Persada Tbk., Japan Petroleum Exploration Co. Ltd. (Japex) and Mitsubishi Corporation.
PGN is also in talks with other production sharing contractors (PSCs) to secure gas to meet growing demand in East Java as well as in other parts of the country.
Gas produced from the fields is transported through PGN?s East Java gas pipeline to PT Perusahaan Listrik Negara, PT Petrokimia Gresik, Pertagas, and Indogas.
?We are also in talks to secure gas supply from gas producers in South Sumatera. We are now discussing the gas volume and price,? he added.
He said the domestic demand of gas exceeds the supply. At present, the company only manages to supply a total of 800 mmscfd.
Editing by Roffie Kurniawan