TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
PGN awaits regulator’s clarity to secure more gas supply
State-owned gas distribution company PGN awaits clarity on the amount of gas volume and costs from the Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) to secure long-term gas supply for buyers amid a supply decline from PT Medco Energi Internasional’s Corridor Block.
Change Size
A PGN worker walks past semi-processed zinc sheet coils in a warehouse owned by PT Tumbakmas Inti Mulia in Bekasi, West Java. (PGN/PGN)
S
tate-owned gas distribution company PGN is awaiting clarity from regulators to secure more long-term gas supply for its buyers amid declining supply from PT Medco Energi Internasional’s Corridor Block.
PGN said the company hopes the Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) could soon provide clarity on the liquified natural gas (LNG) supply it could get from Tangguh Train 3 to compensate an expected decline in gas supply.
PGN president director Arief Setiawan Handoko said on Wednesday he was worried because gas supplies from Corridor Block to the company have recently declined by 23 percent to 400 billion British thermal units per day (bbtud) from the usual 520 bbutd.
“Even though PGN has yet to have [additional] allocation from SKK Migas, we truly hope we can get it to ensure gas supply availability to customers,” he said during the annual Indonesian Petroleum Association Convention and Exhibition (IPA Convex) in Tangerang, Banten.
Read also: Indonesia falls behind oil and gas investment target
According to SKK Migas, Medco’s Corridor Block supplied 773 million standard cubic feet per day (mmscfd) last year, the second largest amount after BP’s Berau Block.
If the supply of gas to end buyers is insufficient, PGN had to mix gas from the pipeline with liquefied natural gas (LNG) in the floating storage and regasification unit (FSRU) in Lampung to cover a dearth in quota, it said.
