SKK Migas to approve price increase for Corridor gas

By Godang Sitompul

Upstream authority SKK said it will approve the increase in the price of gas from Corridor block in South Sumatra owned by ConocoPhilips delivered to West Java through the pipeline owned by state owned gas distributor PT Perusahaan Gas Negara (PGN).

It has been reported that Conoco has asked to raise the price of its gas to US$6 per mmbtu from $4.15 per mmbtu at present. The American firm wants the new price to be effective immediately.

?As long as the price increase is the result of negotiation between Conoco and PGN, we will certainly approve it,? he said.

Last year, PGN agreed to raise its purchasing prices for gas from several gas producers which is shipped through its pipeline to West Java. Under the agreement, the price of Conoco?s Corridor gas will be gradually increased to US$5.6 and then $6.5 per mmbtu in 2014 from $1.85 per mmbtu under the original contract

Editing by Johannes Simbolon