The Jakarta Post reported that PT Pertamina EP and state fertilizer maker PT Pupuk Kujang have sealed a gas supply agreement worth USD 430.4 million.

Under the agreement, signed on December 29th 2011, Pertamina will deliver gas from several fields in Java, predominantly from the western part of the island, to a submission point at the Dawuan metering station in Cikampek, West Java.

The amount of gas that will be channeled is 39 million standard cubic feet per day or 70,200 million standard cubic feet of gas for the contract's duration of five years January 1st 2012 to December 31st 2016.

Mr Syamsu Alam president director of Pertamina EP said that the gas supply was the manifestation of the company's support to the country's industrial sector, particularly the fertilizer industry.

He added that "With this agreement and the improvement in the gas selling price, I believe that the efforts to discover more gas will be boosted. I hope that customers can adjust to the new price so that we can accelerate the exploration work to add to Indonesia's gas reserves."

The company's gas production has relentlessly increased over the past six years. In 2006, total production was only 869 million standard cubic feet per day. The amount jumped by 12.7% to 980 million standard cubic feet per day in 2007 and then up again to 1,003 million standard cubic feet per day in 2008.

In 2009, production reached 1,043 million standard cubic feet per day, growing 3.9% YoY. In 2010 and 2011, production reached 1,054 million standard cubic feet per day and 1,070 million standard cubic feet per day, respectively.

(Sourced from www.thejakartapost.com)