Companies sign gas-supply deal for Java

Jan 19, 2012 12:00 AM

Pertamina EP and state fertilizer maker Pupuk Kujang have sealed a gas-supply agreement worth $ 430.4 mm. Under the agreement, signed on Dec. 29, Pertamina will deliver gas from several fields in Java, predominantly from the western part of the island, to a submission point at the Dawuan metering station in Cikampek, West Java.
The amount of gas that will be channelled is 39 mm cfpd, or 70,200 mm cf of gas for the contract’s duration of five years: Jan. 1, 2012, to Dec. 31, 2016.

Pertamina EP’s president director, Syamsu Alam, said the gas supply was the manifestation of the company’s support to the country’s industrial sector, particularly the fertilizer industry.
“With this agreement and the improvement in the gas selling price, I believe that the efforts to discover more gas will be boosted. I hope that customers can adjust to the new price so that we can accelerate the exploration work to add to Indonesia’s gas reserves,” he said.

The company’s gas production has relentlessly increased over the past six years. In 2006, total production was only 869 mm cfpd. The amount jumped by 12.7 % to 980 mm cfpd in 2007 and then up again to 1,003 mm cfpd in 2008.
In 2009, production reached 1,043 mm cfpd, growing 3.9 % from a year earlier. In 2010 and 2011, production reached 1,054 mm cfpd and 1,070 mm cfpd, respectively.

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