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PGN, Santos sign gas sales and purchase agreement

PGN and Santos sign SPA on gas supply (Photo credit: PGN)

JAKARTA ( – PT Perusahaan Gas Negara Tbk (IDX:PGAS) has signed a sales and purchase agreement (PPA) with Santos Pty Ltd on gas supply deal.

Under the agreement, PGN will receive gas from Meliwis field, offshore Madura, which is operated and developed by Santos.

“The additional gas supply will help strengthen the supply of gas to customers, in particular in Eastern Indonesia,” said Danny Praditya, Director of Commercial of PGN.

Based on the deal, Santos will supply 20.3 Bbtud of gas to PGN through East Java gas pipeline from 2020 until August 2023. The gas pipeline is a form of synergy between Sub Holding Gas with Pertagas.

In the period of Jan-Oct. 2018, PGN has supplied 828.98 MMscfd.

PGN is now under the State Owned Oil and Gas Holding, in which Pertamina becomes the holding. Under the scheme, Pertamina Gas (Pertagas) will become a subsidiary of PGN.

As of end September last year, PGN’s  operates gas pipeline with total length of 7,516.70 kms or equals to 80% of the country’s gas pipeline network.

PGN supplies gas to 1,739 manufacturer and power plants, 1,984 commercial consumers such as hotels, restaurants, hospitals aas well as 177,710 households. (*)

Written by Staff Writer

Edited by Roffie Kurniawan (email:

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