Pusri, Pertagas to extend gas supply deal

Fertilizer producer PT Pupuk Sriwijaya signed an MoU with PT Pertagas Niaga on supply of 14 MMSCFD of gas. The deal will extend a previous contract between them that will expire on December 31, 2012.

"The extension will prevent Pusri from failure to meet its gas need particularly during its revitalization program," SOE minister Mustafa Abubakar said in his speech.

State gas distributor PT Perusahaan Gas Negara (PGN) also inked a sales agreement with state steel maker PT Krakatau Steel (KS) and Pusri. "This is a display of our commitment to Pusri and KS, and we will deliver gas to their plants," he said.

PGN president Hendi Prio Santoso said the company was building a re-gasification terminal that is expected to meet Pusri and KS demand.

PGN business manager Michael Baskoro said the MoU proved the company had secured buyers of its re-gasification terminal. "The MoU marks a start to our negotiation to supply gas to Pusri and KS," said Baskoro. (godang/giok)