PHE stops gas supply to PGN

PT Pertamina Hulu Energy (PHE), an upstream unit of state-owned oil, gas firm PT Pertamina confirmed on Thursday that it has stopped gas supply from its Offshore North West Java (ONWJ) block to state gas distributor PT Perusahaan Gas Negara (PGN).

PHE?s spokesman Ali Mundakir told Petromindo.com that the stoppage of gas supply because the contract expired on Feb. 28 this year. ?Actually, the contract expired in December 2009, but PGN asked for 2 months extension,? he said.

ONWJ normally supplies 30 millicon cubic feet per day (MMCFD) to PGN.

There isn't enough reserve at ONWJ for PGN as all the gas reserve there has been committed to state owned electricity firm PT Perusahaan Listrik Negara (PLN) and fertilizer firm PT Pupuk Kujang, he said.

"I have to ask (oil and gas upstream sector regulator) BPMIGAS whether it still gives us an option to sell the gas to PGN," he said.

In earlier statement as quoted by Investor Daily, PGN's corporate secretary Wahid Sutopo said that PGN had received a notification letter regarding the stoppage of gas supply.

Gas supply from ONWJ has been channeled by PGN to 150 industries, which have become the company?s regular buyers, in Jakarta and Banten region, he said. (bernard)