PGN, Pertamina EP Sign Agreement to Adjust Gas Prices
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21 May 2020 17:08 WIB
TEMPO.CO, Jakarta - State gas company (PGN) signed an agreement with Pertamina EP for the Implementation of Natural Gas Prices for South Sumatera-West Java Projects and PGN Medan Customers. The signing ceremony was held Wednesday, May 20, witnessed by Energy Minister Arifin Tasrif.
The agreement was signed by PGN's commercial director Fariz Aziz and Pertamina EP president director Nanang Abdul Manaf.
Fariz said the cooperation aims to support and follow up on Energy Minister's Regulation No.8/2020 on determining the users and prices of certain natural gas for industrial needs. It is also a derivative rule to the Energy Minister's Decree no.89K/2020 on the users and price of certain natural gas in the industrial field.
Through this agreement, PGN and Pertamina EP reduce the gas price of PJBG to US$4 per mmbtu from US$5.33 mmbtu, with a volume of 90 bbtud. For PGN Medan, the volume is set at 7 bbtud with a price of US$4 per mmbtu.
This agreement is effective from April 13, 2020 to December 31, 2024.
"We hope this agreement becomes a concrete step in achieving the government's target to encourage industrial progress and supply affordable electricity for the public. That way, it will bring benefits to the national economic growth as well as providing multiplying effects on people's welfare," PGN president director Suko Hartono said on the sidelines of the signing ceremony.
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