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PGN to acquire shale gas block in US
PT Saka Energi Indonesia, a subsidiary of state-owned gas firm PT Perusahaan Gas Negara (PGN), is set to acquire Swift Energy Company's shale gas block in Fasken, the United States, this year
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T Saka Energi Indonesia, a subsidiary of state-owned gas firm PT Perusahaan Gas Negara (PGN), is set to acquire Swift Energy Company's shale gas block in Fasken, the United States, this year.
Saka is expected to complete the transaction to acquire 36 percent of participating interest in shale gas block in Fasken on June 30 with an investment of US$175 million, kontan.co.id reported on Friday.
The Fasken block is located in Eagle Ford, Houston, Texas.
Saka's operational director Tumbur Parlindungan said that the expansion was aimed at gaining knowledge on shale gas technology that Indonesia is yet to acquire.
He also said that this expansion would guarantee gas energy supply in Indonesia in the long run even though it would mean that the country needed to import the gas from the US.
"This will benefit Indonesia in the future because we have a gas shortage," Tumbur said as quoted by kontan.co.id, adding that the US government planned to construct a liquefied natural gas (LNG) plant in 2018 and Saka would be ready to supply LNG from the shale gas block in Fasken to Indonesia.
Meanwhile, PGN vice president of corporate communication Ridha Ababil said that the investment was carried out due to the huge potential of the shale gas business.
However, Ridha said that they have not decided whether they would import the gas to the country or not in the future.
"Every action needs approval from the US government," he said.
In addition, he said that there was a good chance that the publicly listed PGN through its subsidiaries would acquire more oil and gas blocks abroad. (nfo/nvn)
