PGN to triple price of gas from ConocoPhillips' Corridor block

By Godang Sitompul

American energy firm ConocoPhilips and state owned gas distributor PT Perusahaan Gas Negara (PGN) signed on Tuesday a contract on a new price for the gas from the Corridor block in central Sumatra operated by the American firm.

Under the new contract, the price of Corridor gas will be gradually increased to US$5.6 and then $6.5 per mmbtu in 2014 from $.1.85 per mmbtu under the old contract, according to a press statement from upstream authority BPMIGAS.

Meanwhile, PGN and state owned oil and gas firm PT Pertamina also signed an agreement to raise the price of gas from the latter?s gas fields in southern Sumatra to $5.5 per mmbtu and then $6 per mmbtu from $2.2 per mmbtu in the old contract.

PGN receives about one third of its gas from Corridor block. At the present, the state firm distributes and transmits about 760 mmscfd and 860 mmscfd of gas.

Editing by Johannes Simbolon