PGN will soon increase gas sale prices to customers
Wednesday, May 9 2012 - 01:34 AM WIB
The company?s corporate secretary Heri Yusup said in Jakarta on Tuesday that although the prices of gas it bought from the two fields had been increased by more than 200 percent, the company would still consider the customers? economic condition and competitiveness in raising the gas prices.
PGN?s agreement to raise the purchasing prices of its gas is part of the company?s commitment in supporting the government?s efforts to increase state revenues as well as to encourage more exploration activities in the future.
?With this commitment, PGN hopes it will receive support from regulator and producers on securing more gas supply to meet the rising demand from industries,? he said.
The price of gas from the Grissik field at the Corridor block in South Sumatera, operated by US-based ConocoPhillips, has been increased to $5.6 per million British thermal unit (mmbtu) from $1.85. The price will be increased further to $6.5 per mmbtu in 2014.
The gas from the Pagardewa field in South Sumatera, operated by Pertamina EP, has also been increased to $5.5 per mmbtu from only $2.2 per mmbtu. The price of gas from Pagardewa will also be increased to $6 per mmbtu in 2013.
Gas from the two fields are distributed to PGN?s customers in Banten, West Java and Jakarta through the South Sumatera-West Java gas pipeline.
Editing by Benget Besalicto Tnb.