PGN, Santos to sign sales deal

PGN, Santos to sign sales deal

JAKARTA: PT Perusahaan Gas Negara, Indonesia's state-controlled gas distributor, said it will sign an agreement next month to buy as much as 100 million cubic feet a day of the fuel from Santos Ltd., Australia's biggest natural gas producer.

The signing, originally scheduled for June 25, has been delayed at least twice because paperwork was incomplete and because of changes to former President Megawati Soekarnoputri's schedule, Djoko Harsono, head of the marketing division of Indonesia's state oil and gas regulator BPMigas said in July.

"The two companies have agreed on all crucial things and are only waiting for legal paperwork," W.M.P. Simandjuntak, Perusahaan Gas's president director, said in Jakarta. "We're planning the signing in mid-December."

Santos in January signed an initial agreement to sell as much as 100 million cubic feet a day of gas from the A$150 million (US$103 million) Maleo project to Perusahaan Gas, which will resell the gas to state utility PT Perusahaan Listrik Negara.

Perusahaan Gas will buy the gas from Maleo at $2.24 per million British thermal units, he said. -- Bloomberg