Macquarie PGAS: to sign gas sales contract by end of this month

PGAS investor relations said the company will within this month sign the gas sales agreement with Muara Kawang power plant, who has agreed to take on 30 mmscfd gas from PGAS. The price will be set at market price of US$5.5/mmbtu. First gas flow is targeted for June 2009. Macquarie assumes the first gas flow will only come in December. The earlier realization will lift FY09 EPS by around 2%. Macq rates Outperform with PxT of Rp3,100.