PHE extends gas supply contract to PGN

Upstream oil, gas authority BPMIGAS said Pertamina Hulu Energi (PHE) has extended gas supply contract from its Offshore NorthWest Java (ONWJ) block offshore West Java to state gas distribution firm PT PGN (Persero) for another three months until June 2010.

Spokesperson Sulistya Hastuti said PHE will supply 30 MMCFD of gas to PGN.

PHE earlier has decided not to extend gas supply contract with PGN which expired in February this year due to reserves depletion.

The stoppage, together with supply reduction from Pertamina?s gas field in Pagar Dewa, South Sumatra from 250 MMCFD to 170 MMCFD, has prompted PGN to plan to reduce gas supply to its customers in greater Jakarta and have caused outcry among customers, which demanded government to take action to solve gas supply shortage problem. (bernard)