PT Pembangunan Batam ready for gas supplies to industries

Batam, Riau Islands (ANTARA News) - Batam regional company PT Pembangunan Batam has established cooperation with state gas company PT PGN and PT Inti Daya Latu Prima to join gas supplies from the Jambi Merang well for local industries.

President Director of PT Pembangunan Batam Hari Basuki after signing the cooperation agreement at the Batam Mayor`s office on Tuesday said that everyday the regional company and PT Inti Daya Lalu Prima will be given a concession from PT PGN to supply 20,000 MMBTU of gas per day.

"The supplies will be sold and used to meet the need of industries in Batam which had been used for the diesel power plant," he said.

But he said in the early stages, Batam will get 5,000 MMBPU per day as of April 2012.

He said that since 2008 efforts of gas transaction business cooperation have been made to support the free trade status in Batam, and it could be realized only in 2012 because of the complicated bureaucracy.

"Batam has no field but gets gas supplies to support the needs of the free trade zone," Hari said.

Riza Pahlevi, Financial Director of PT PGN said the company has a commitment to increase gas fuel in the country.

"Natural gas is cheaper than fossil fuel. For that we are constantly trying to boost the use of natural gas as main fuel," he said.

He said while natural gas is not as cheap of some time ago, but it is still cheaper than other fuels.

The managers of the industrial zone welcomed the cooperation because gas supplies for industries would be considerably cheaper.

General Manager of Batamindo Jhon Sulistiawan hoped the supplies would reduce the burden of using kerosene by 40 pct. (*)