JAKARTA, Aug 7 (Reuters) - Canada's Husky Energy Inc. (HSE.TO: Quote <http://stocks.us.reuters.com/stocks/overview.asp?symbol=HSE.TO&WTmodLoc=Hyb Art-C1-ArticlePage1> , Profile <http://stocks.us.reuters.com/stocks/fullDescription.asp?symbol=HSE.TO&WTmod Loc=HybArt-C1-ArticlePage1> , Research <http://stocks.us.reuters.com/stocks/analystResearch.asp?symbol=HSE.TO&WTmod Loc=HybArt-C1-ArticlePage1> ) on Tuesday inked deals worth $2 billion for gas supply to Indonesian firms, the country's energy watchdog said.
Raimo Keto, a general manager for Husky, said a 15-20 year deal to supply gas distributor PT Perusahaan Gas Negara Tbk (PGAS.JK: Quote <http://stocks.us.reuters.com/stocks/overview.asp?symbol=PGAS.JK&WTmodLoc=Hy bArt-C1-ArticlePage1> , Profile <http://stocks.us.reuters.com/stocks/fullDescription.asp?symbol=PGAS.JK&WTmo dLoc=HybArt-C1-ArticlePage1> , Research <http://stocks.us.reuters.com/stocks/analystResearch.asp?symbol=PGAS.JK&WTmo dLoc=HybArt-C1-ArticlePage1> ) (PGN) was expected to start in 2011, with a total volume of 126 trillion British thermal units (BTU). The gas would come from Husky's offshore block in Madura, East Java. Husky also signed gas supply deals with PT Inti Alasindo Energy and PT Pama Raya, with a combined volume of 340 trillion BTU from 2011 for 20 years, energy watchdog officials said. "Husky's contract with PGN is worth $543 million," Kardaya Warnika, the head of Indonesia's energy watchdog, BPMIGAS, told reporters after the signing. The other two deals are worth $734.4 million each, the watchdog said. Indonesia, Asia-Pacific's only OPEC member, is increasing its use of alternative energy sources such as natural gas in a bid to reduce oil use amid high prices and dwindling domestic supply. In signings that took place in the offices of the energy watchdog in Jakarta. Indonesia's Medco Energi Internasional Tbk (MEDC.JK: Quote <http://stocks.us.reuters.com/stocks/overview.asp?symbol=MEDC.JK&WTmodLoc=Hy bArt-C1-ArticlePage2> , Profile <http://stocks.us.reuters.com/stocks/fullDescription.asp?symbol=MEDC.JK&WTmo dLoc=HybArt-C1-ArticlePage2> , Research <http://stocks.us.reuters.com/stocks/analystResearch.asp?symbol=MEDC.JK&WTmo dLoc=HybArt-C1-ArticlePage2> ) also inked a 14-year gas deal to supply a fertiliser company, PT Pupuk Sriwijaya, to begin in 2008, with a total volume of 178 trillion BTU. Medco would supply Sriwijaya with gas from its block in South Sumatra. Indonesia's state oil firm, Pertamina, signed a gas supply agreement with local steel firm, PT Krakatau Steel, to sell 204 trillion BTU over five years, starting this year. Indonesia, which has far more gas than oil, has pushed companies to move faster in developing production as the country badly needs the gas for domestic industries and exports. Indonesia, the world's second-biggest liquefied natural gas (LNG) exporter after Qatar, has been struggling to meet export commitments due to declining gas output being diverted to the domestic market. The country is estimated to have gas reserves of around 182 trillion cubic feet.
