From GOI

PGN Plans Compressed Natural Gas Project


State-owned gas distributor PT PGN said on Tuesday (21/11/06) it plans to invest $400 million developing a compressed natural gas project.

The company's corporate secretary, Widyadmiko Bapang, said the project is part of the government's effort to reduce the country's oil product consumption in the face of high oil prices.

"We plan to start the project in 2008," Bapang said, according to Reuters. He added that the gas would come from Kalimantan and would be used to supply the country's eastern region.

Bapang earlier said that PGN is in talks with US oil major ConocoPhillips for more natural gas supplies.
PGN has said it will build a 450-km gas pipeline from Central Sumatra to North Sumatra that would cost about $500 million and begin in 2008.

PGN expects the gas to come from a ConocoPhillips field in South Sumatra. "We will supply gas to industries and power plants in north Sumatra for about 200 million cubic ft per day," he said. “ConocoPhillips has more gas reserves that we can use from South Sumatra. That's why we are in talks about price and other issues with them."

ConocoPhillips also has a contract with PGN to supply 2.3 trillion cubic ft of gas for 17 years to West Java by pipeline from its South Sumatra gas fields that is scheduled to begin by the end of this year.
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