JAKARTA. The Federation of Pertamina United Labor Unions (FSPPB) has threatened to stop gas supplies to state-owned gas distributor PT Perusahaan Gas Negara (PGN) following the announcement of a plan for PT PGN to acquire PT Pertamina Gas (Pertagas).

FSPPB president Ugan Gandar said that Pertamina Gas, a subsidiary of state oil and gas firm Pertamina, currently supplies 250 million metric standard cubit feet per day to PGN.

“We will stop the supplies if the planned acquisition is realized,” he stated.

Rumors were rife that State-Owned Enterprises Minister Dahlan Iskan had issued a statement on May 7, 2014, announcing a plan to merge the two companies.

Dahlan categorically denied that he had issued the statement and gave assurances that the merger would not occur.

“Both the state-owned gas firms have given up the plan and are willing to cooperate. So, there is no urgency regarding the merger of Pertagas and PGN,” he said.

Editor: Asnil Amri