PGN will get additional gas supply from Santos

State owned gas distribution company Perusahaan Gas Negara (PGN) will get additional gas supply of about 100 million cubic feet per day (MMCFD) under the new contract to be signed by the company with gas producer Santos in December, this year, Investor Daily reported on Tuesday.

PGN's president WMP Simanjuntak said on Tuesday that under the contract which is estimated to be worth US$654 million, PGN will receive gas supply of about 100 MMCFD from Santos for eight years.

"The price has been approved. The basic price of the gas has been fixed at US$2.24 per MMCFD or US$654 million for the entire contract," he said, adding that PGN was currently still negotiating the standby Letter of Credit (LC) to be given to Santos as the guarantee of the gas purchase agreement.

Simanjuntak said that the gas will be taken from Santos's offshore Maleo gas field offshore East Java. (*)