PGN will sign gas purchase contract this week
Wednesday, July 7 2004 - 03:48 AM WIB
State-owned gas company PT Perusahaan Gas Negara (PGN) will sign new gas purchase contracts with several gas producers on Friday, this week to provide additional gas supply for its individual and corporate buyers in North Sumatra, Java and eastern Indonesia, Investor Daily reported on Wednesday.
PGN's president director WMP Simanjuntak said in Jakarta on Tuesday that gas producers which would sign the contracts would include Lapindo Brantas, Medco Energy, Kondur Petroleum, Kodeco, Pertamina and ConocoPhillips.
Simanjuntak said that the contracts which were initially scheduled for signing on June 25 would enable the company to receive 1,200 million cubic feet of gas supply per day for between five and seven years.
In addition to the new contracts, PGN is also constructing an inter-island pipeline linking West Java and South Sumatra to secure additional gas supply of about 600 million cubic feet per day for its gas buyers in West Java. The pipeline is scheduled for operation in 2006.
Simanjuntak said that PGN was currently waiting for financial assistance of about US$1 million from Asian Development Bank (ADB) to finance a feasibility study on the construction of another inter-island gas pipeline linking East Kalimantan and East Java.
The feasibility study on the proposed gas pipeline network that will enable the company to get gas supply from several gas producers in East Kalimantan will be carried out in August.
"It's expected to be completed in six months. Based on the feasibility study, ADB would decide whether or not it would provide the financing for the pipeline project," he said. (*)