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PGN upbeat on output target despite disruptions
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Workers perform maintenance work on a gas pipeline belonging to PT Perusahaan Gas Negara (PGN) in Jakarta. (JP/Dhoni Setiawan)
D
espite gas supply disruptions in the first quarter of the year, publicly listed gas distributor PT Perusahaan Gas Negara (PGN) is confident its full-year gas volume target remains achievable.
PGN said its gas supply from East Java in May would be lower due to another disruption, the third this year after similar cases in January and February.
PGN president director Gigih Prakoso said the gas supply disruption in East Java had badly affected the company’s total gas volume in the first quarter of 2019.
“In the first three months of 2019, we saw a decline in gas volume due to supply disruption in East Java and also [facility] maintenance by ConocoPhillips,” Gigih said after the company’s annual shareholders meeting on Friday.
In East Java, PGN receives its gas supply from Husky-CNOOC Madura Limited, which is a joint venture between Canada’s Husky Energy, China National Offshore Oil Corporation (CNOOC) and local oil energy firm Samudra Energy.
“It will affect much of our gas volume in the first quarter of 2019. However, we will hopefully recover in the rest of these months, so we can achieve our targets,” Gigih said, adding that PGN would announce its Q1 financial report on May 20.
In February, it was reported that US-based oil firm ConocoPhillips would conduct maintenance, known as a planned shutdown, in its Corridor Block in South Sumatra, which also affected the gas supply.
