Platts Commodity News September 4, 2007

Indonesia's state-owned gas transmission and distribution company Perusahaan Gas Negara earned revenue of Rupiah 3.8 trillion ($408.6 million) for the first half of 2007, up by Rupiah 473 billion compared with the same period of 2006, mainly because of higher earnings from the distribution business, the company's corporate secretary, Heri Yusup, said in a statement over the weekend.

Income from operations in the first half was Rupiah 1.389 trillion.

Meanwhile, with the starting of the South Sumatra-West Java pipeline, PGN has started depreciating assets and calculating interest, which saw net income reduced to Rupiah 1 trillion.

Sales volume for the first half of 2007 rose 17% to 389 Mcf/d from 332 Mcf/d in the same period last year. The distribution business also showed rising volumes -- up 6% from 679 Mcf/d for the first half of 2006 to 720 Mcf/d for the same period this year.

Gas distribution through the South Sumatra-West Java gas transmission network reached 130 Mcf/d in the first half of the year, below the target of 150-177 Mcf/d set for the end of August, as some customers have yet to optimize gas utilization and work on the distribution network is still on.