Indonesia’s state-run gas distributor Perusahaan Gas Negara (PGN) has put aside a 5 trillion rupiah ($536.9 million) fund as it looks to acquire gas blocks in order to safeguard domestic supplies.

The Jakarta Globe quoted PGN president director Prio Santoso as saying the company was targeting blocks in Indonesia and elsewhere in the Southeast Asia region.

Hendi was also quoted as saying that the company’s gas shortage last year amounted to 350 MMcfd, but that figure was expected to increase to 700 MMcfd by 2015.

PGN risk and planning director Wahid Sutopo said the company was currently carrying out due diligence on two potential gas blocks in Indonesia without providing further details, according to the Jakarta Globe.

The Globe also cited PGN’s finance director Reza Pahlevi as saying the company, which had $1.3 billion in cash as of 31 March, would fund the acquisitions through its own funds, however he did not rule out seeking bank loans if more funds were needed to finance the purchases.

By EnergyWay