PGN targets Rp 368.4m profit

JAKARTA (JP): State-owned natural gas distribution company PT Perusahaan Gas Negara (PGN) expects to record a 242 percent increase in net profits as it marks up Rp 368.4 billion (US$46 million) this year against Rp 107.5 billion last year.

Company president A. Qoyum Tjandranegara said on Thursday that the company was expecting its natural gas supply to increase by 95 percent to 522.85 million cubic feet per day (MMCFD) this year.

"Our gas supply will significantly increase this year following the recent operation of our gas pipelines in central Sumatra," Qoyum was quoted by Antara as saying.

PGN started operating its 536-kilometer pipeline last October to supply natural gas from the gas fields in Grissik, South Sumatra owned by Canada's Gulf Resources to the oil fields in Duri, Riau owned by PT Caltex Pacific Indonesia. The gas is used to pump crude oil from the Duri oil wells.

PGN is reportedly transmitting 310 MMCFD of natural gas from Grissik to Duri at a cost of 62 US cents per thousand cubic feet per day (MCFD). (jsk)