PGN NOT INTERESTED IN BUYING SENORO GAS

Jakarta, Aug 31 (ANTARA) - State gas distributor PT Perusahaan Gas Negara Tbk (PGN) said it has no intention to buy gas from the Donggi-Senoro refinery because of its high price.

"It's too expensive, and we therefore still have no intention to buy it," PGN president director Hendi P Santoso said in Jakarta over the week end.

He said the price of the Senoro gas at the well's entrance had been set at 6.16 US dollars per MMBTU.

"And if shipped to Java Island the price may reach 12-13 US dollars per m3, which is the price of diesel oil," he pointed out.

It has been reported that two prospective buyers of Senoro gas in Central Sulawesi were Kansai Electric and Chubu.

But later Kansai withdrew, leaving Chubu as the only overseas buyer.

But the two domestic buyers are state power firm PT PLN and PGN Tbk, and a number of fertilizer plants has also expressed interest in the Senoro gas.

But, Hendi said, the price offered by Senoro was still too high, and therefore it would be rather difficult to sell the gas to its subscribers.

Hendi also compared the price of gas sold to PGN at 5.6 US dollars per m3.***