Press Release: PGN signed GSA with ConocoPhillips
Monday, August 9 2004 - 09:55 AM WIB
Simandjuntak explains, ?This latest agreement is to meet PGN?s growing natural gas demand from its existing and potential industrial customers located mainly in western part of Java as the company tries to build stronger customer base in the Java market.?
He added that PGN purchased the gas at COPI?s ?gate? Corridor Block gas field in South Sumatra with landed cost +/- US$ 2.80 /mmbtu in Muara Tawar and +/- US$ 2.90 /mmbtu in Tegal Gede. Importantly, ConocoPhillips agrees to deliver the gas in early 2007 with the initial supply of 170 million cubic feet per day (MMSCFD) and gradually increases until it reaches the plateau level of 400 MMSCFD.
With two recent gas purchase agreements, which consists of this agreement completed today and the other agreement entered into with Pertamina to secure additional natural gas supply from Pagar Dewa gas field in South Sumatra, PGN will therefore able to deliver gas amounting to 650 MMSCFD (excluding transmission) or approximately 2.5 times the revenue received in 2003 from the distribution business.
From the agreement with ConocoPhillips, PGN would expect to generate additional revenue gradually between US$ 200 million (increase by +/- 80 percent from 2003 revenue) to US$ 500 million (about double of 2003 revenue) per annum.
Simandjuntak underlines the company?s constant commitment to provide the best alternative source of energy that is more environmental friendly. To achieve this goal, PGN plans to aggressively and yet, prudently expand the present transmission and distribution pipelines as well as securing additional gas supply for the future markets as the company?s retains its position as the nation?s gas provider. (end of release)