PGN to increase gas price by 10 percent
Monday, June 25 2007 - 08:45 AM WIB
State owned gas company PT Perusahaan Gas Negara (PGN) plans to increase selling price for its gas by 10 percent to US$5.50 per million British thermal unit (MMBTU) from $5 per MMBTU at present starting in August this year.
PGN’s President Director Soetikno said on Monday that the plan followed the decisions by gas producers to increase the price of their gas supplies to PGN.
“The gas producers have increased the price of their gas from $2.5 to $4 per MMBTU,” Soetikno said.
PGN gets gas supplies from producers and sell them to the public at higher price after taking into account transportation fee.
Soetikno said the firm had notified its customers about the planned price increase and most of them could accept it.
“Ninety percent of the consumers say they are ready to buy at the new price. Their main concern is related to supply problem rather than price, that is the low pressure and volume of the gas supplies. If the problem is solved, they don’t buy to buy at any price. As a matter of fact, the price is still lower than the price of liquefied petroleum gas, which is now at $14 (per MMBTU),” Soetikno said.
Many industrial companies in Banten and
PGN has finished the construction of the South Sumatra-West Java (SSWJ) Phase II pipeline that will transmit gas from gas fields in
PGN has started supplying Pertamina’s gas from Pagar Dewa in
“We have promised to supply 170-200 MMCFD (from Pagar Dewa to Cilegon and Muara Bekasi) in August,” Soetikno said.
Meanwhile, ConocoPhillips is expected to supply 50 MMCFD to WWSJ Phase I once the pipeline is completed. (Godang)