Indonesia’s PGN inks deal with Repsol to buy gas from Sakakemang block

Indonesian gas utility PT Perusahaan Gas Negara (PGN) said on Friday it has signed a memorandum of understanding with a unit of Spain's Repsol SA to purchase natural gas from Sakakemang block PGN may purchase around 400 to 500 billion British thermal unit per day (bbtud) from the block in South Sumatra, it said in a statement, report agencies. 

"This MoU signing is one of our efforts to secure our gas supply for our customers," PGN's commercial director Danny Praditya said

Indonesia's deputy energy minister Arcandra Tahar said in April that Repsol, which leads the consortium for Sakakemang block, is moving up its start of production target by 2 years after finding an estimated 2 trillion cubic feet of gas resource in Sakakemang block.