Feb 2, 2011

PGN sets US$250 mio capex in 2011

The state-owned gas trasmiter dan distributor PT Perusahaan Gas Negara Tbk (PGN) sets US$250 million capital expenditure (capex) in 2011.
PGN President Director Hendi Priyo Santoso said the capex will be fulfilled by internally generated cash flow and loan facility.
Capex will be used to initiate establishment of LNP receiving terminals in North Sumatra and West Java (joint venture with PT Pertamina).
According to him, both projects will require US$500 million by 2014.
PGN plans to set up the projects in 2011 and hopefully to be completed in 2013-2014 with capacity target of 1.5 million ton per annum respectively.
To meet gas supply, PGN is in talks with BP Tangguh witn estimated contract of 1 million ton per annum for Sumatra project.
For Java's LNG terminal, PGN has entered into agreement with Total Indonesia and Inpex  to secure gas supply of approximately 11.35 million tons in 11 years
Sales volume
Hendi said PGN is eyeing 850-950 MMSCFD of gas sales volume in 2011, a slight increase from  820-825 MMSCFD and 794 MMSCFD in 2009.
As lack of supply, PGN sold 804 MMSCFD gas volume last year with average selling price of US$6.58 per MMBTU. The target of sales volume to reach 900 MMSCFD may be fulfilled by PGN by 2015 from 804 MMSCFD in 2010.

Disclosure: No position at the stock mentioned above.
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