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Indonesia’s PGN, Freeport sign gas supply deal for smelter

Indonesia’s PT Perusahaan Gas Negara (PGN), a unit of state energy firm Pertamina, has signed a gas supply deal with copper miner PT Freeport Indonesia to power its smelter, the company said on Monday (May 6).

PGN will supply up to 9.49 billion British thermal unit per day (BBTUD) for Freeport’s copper smelter, acid plant and precious metal refinery under a long-term contract, PGN said in a statement.

The company did not provide further details on the period of the contract.

Freeport is building a US$3 billion copper smelter in East Java, which is expected to start operating in June.

Freeport hopes PGN will maintain a reliable gas supply to support its processing activities, Freeport Indonesia chief executive Tony Wenas said in the same statement. REUTERS

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