PGN Seeking New Gas Source for Jakarta , Banten Customers

The country’s largest gas distributor PT Perusahaan Gas Negara Tbk (PGN) said that it is currently seeking gas sources to be distributed to its industry customers in Jakarta and Banten after gas received from a unit of Pertamina stopped on Februady 28, as gas sales and purchase contract expired on the day.

Under gas sales and supply contract signed on January 10, 1998 , which was amended on December 16, 2009 , PT Pertamina Hulu Energi (PHE), a unit of state-owned oil and gas company PT Pertamina, distributed up to 1.8 TBTU (trillion british thermal unit) of gas through its ONWJ gas pipeline. As the gas volume has been reached on February 28, the gas supply was then stopped.

The gas supply from ONWJ gas pipeline has been distributed by PGN to 150 industry subscribers in Jakarta and Banten area.

“Considering the impact (of the cease of gas supply) on industry activities in those areas, PGN is weighing a number of options in order to continue gas flow, including options that are being studied jointly with PHE and (upstream oil and gas regulator) BPMigas,” PGN said in a filing to the Indonesian Stock Exchange. PGN however did not disclose a number of options nor impact on its industrial customers before it would get new gas supply. (Roffie Kurniawan)

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