PGN to resume talks with Pertamina on S. Sumatra-W. Java gas transmission

State gas transmission and distribution firm PGN and state oil and gas firm PT Pertamina this month will resume negotiation on the latter?s request to transmit bigger volumes of natural gas from South Sumatra to West Java, a PGN official told Petromindo.Com on Friday.

Negotiation talks were halted a few months ago as PGN was then busy with preparations to launch initial public offering, said PGN?s development director Adil AbasReksoatmodjo.

PGN had earlier signed gas sales and purchase agreement with Pertamina, in which Pertamina would supply up to 250 million cubic feet per day (MMCFD) of natural gas to West Java starting 2007.

In July 2003, PGN signed a memorandum of understanding with Pertamina in which the latter will supply additional 250 MMCFD of natural gas through PGN?s pipeline starting around 2008.

Aside from Pertamina, US oil company ConocoPhillips will also supply 400 MMCFD of natural gas to West Java from its Corridor gas block in South Sumatra using the pipeline.

PGN had set a target to complete the installation of the 700-kilometer pipeline in 2006. The company also had decided to boost the pipeline capacity from the initially planned 750 MMCFD to 1.1 BCFD. (godang)