URGENT: PGN prepares ?emergency measure? to continue supplying gas to customers

State owned gas distribution and transmission company PT Perusahaan Gas Negara (PGN) is preparing an emergency measure to continue supplying natural gas to its industrial customers in East Java following an explosion incident at the pipeline that transmits its gas.

A explosion on Wednesday evening at the East Java Gas Pipeline owned by state owned oil and gas company PT Pertamina near the Banjar Panji well in Porong owned by PT Lapindo Brantas Indonesia that has been gushing mudflow for seven months has forced the state owned company to suspend the operation of the pipeline.

The pivotal pipeline that carries 140 million cubic feet (MMCFD) of natural gas from fields offshore East Java, including 78 MMCFD from the Maleo field owned by Australian firm Santos (Madura Offshore) Pty Ltd to PGN.

?(As a result of the incident) gas supplies from Santos has automatically come to a halt. What we are going to try to do is close the Pertamina pipeline using a 28-inch valve and transmit (Santos?) gas through interconnection pipe owned by PGN in Porong,? PGN?s president Soetikno told Petromindo via telephone Wednesday night.

?If everything goes well, (the effort to resume gas supplies to customers) will be completed in three days,? he said.

PGN started supplying natural gas from Maleo field in September this year. Under the gas sales and purchase agreement (GSPA) with Santos, PGN will a total of 243 billion cubic feet of gas from Santos over a period of 8 to 12 years.

PGN distributes the gas to its industrial costumers in the province. (Godang)