PGN to raise gas selling prices
Tuesday, May 8 2012 - 09:04 AM WIB
State owned gas distributor PT Perusahaan Gas Negara (PGN) wiil increase its selling price for consumers following the increases in its purchasing price of gas from two main producers, American firm ConocoPhillips and state owned oil and gas firm PT Pertamina.
?There will be price increases, but it is still under discussion. We shall announce it to the public once we have determined the prices,? PGN?s Finance Director Reza Pahlevi was quoted by Kontan as saying on Tuesday
He made the statement following a ceremony on Tuesday in which PGN signed amendments to the company?s contracts with ConocoPhillips and Pertanina to raise its purchasing prices of gas from both companies.
Under the amended contract, PGN?s purchasing price of gas supplied from ConocoPhillips-operated Corridor block in central Sumatra will be increased in phases to US$5.6 and $6.5 per mmbtu in 2014 from $.1.85 per mmbtu under the old contract for the supply volume of 412 billion British thermal unit per day (bbtud).
Meanwhile, PGN?s purchasing price of gas from Pertamina?s gas fields in southern Sumatra will be increased in phases to $5.5 per mmbtu and then $6 per mmbtu from $2.2 per mmbtu in the old contract for the supply volume 250 bbtud.
Reza said PGN hoped that upstream authority BPMIGAS would allow it to get additional gas supplies following its willingness to raise its purchasing prices.
?BPMIGAS has voiced commitment to increasing the volume of gas supplies (to PGN) once the prices have been increased,? he said.
PGN said in its latest financial statement that at present, it distributes and transmits 780 and 860 mmscfd of gas respectively.