PGN will soon sign gas purchase contract with Santos
Wednesday, January 5 2005 - 02:56 AM WIB
State owned gas distribution company Perusahaan Gas Negara (PGN) expects the company will soon sign a gas purchase agreement with Santos to get additional gas supply for its consumers in East Java, Investor Daily reported on Wednesday.
PGN's corporate secretary Widyatmoko Bapang said in Jakarta on Tuesday that the company was still completing the draft of the gas purchase contract with Santos which would supply the gas from its gas field in Madura.
"We are still completing the draft of the contract, especially on clauses related to the issuance of letter of credit (L/C)," he was quoted as saying, adding that he hoped the contract could be signed soon so that the gas from Santos' field could go on stream this year.
Widyatmoko said that the gas supply from Santos' gas field in South Madura would be transmitted to PGN's gas receiving terminal in East Java trough a pipeline owned by Pertamina.
At present, according to Widyatmoko, PGN relies on gas supply from Lapindo Brantas' Pangerungan and Wunut gas fields to meet the demand from its consumers. "The gas fields are only able to supply between 100 and 135 million standard cubic per day (MMSCFD). This gas supply is only enough for our existing consumers," he said. (*)