PGN will sign MoU with Kondur and Asahan Power
Wednesday, October 13 2004 - 02:17 AM WIB
State-owned gas utility PT Perusahaan Gas Negara Tbk (PGN) will sign a memorandum of understanding (MoU) with Kondur Petroleum SA and Asahan Power on Thursday on the purchase and sale of gas, the Investor Daily Indonesia newspaper reported in its Wednesday edition.
PGN will buy gas from Kondur in Riau and sell it to Asahan in North Sumatra.
WMP Simandjuntak , PGN?s president director, said his company expecting the MoU will encourage other potential gas buyers in North Sumatra to buy from PGN.
?The gas market in North Sumatra has huge potential. With the MoU, we will try to boost our cooperation. It will also generate interest among gas buyers," Washington told Investor in Medan on Tuesday.
Currently, PGN has around 10,000 household customers and 53 industrial customers.
Under the MOU, PGN will buy 120 million cubic feet per day (MMSCFD) gas from Kondur and sell 100 million MMSCFD to Asahaan.(*)