Pertagas to Begin Operating Arun-Belawan Pipeline in October
Jakarta. Pertamina Gas, a subsidiary of state oil and gas company Pertamina, plans to allow use of the open access gas transmission pipe that will connect its Arun regasification plant in Aceh with North Sumatra's Belawan power station in October.
The term "open access" refers to a facility which is built to accommodate multiple users, from whom the controlling firm — in this case, Pertamina Gas (Pertagas) — will receive a toll fee.
"As of June, roughly 85 percent of construction has been completed. Our target is for the transmission pipeline to come on stream in October," Pertagas president director Hendra Jaya said on Wednesday.
Hendra added that once the 350-kilometer pipeline is operational, it will be capable of transmitting up to 300 million standard cubic feet of gas per day (mmscfd) to gas-fired power plants controlled by state utility company Perusahaan Listrik Negara (PLN).
Supply will come from fields operated by ExxonMobil Oil Indonesia, including the Arun gas field in Aceh.
"The volume [that will be delivered] from ExxonMobil will be around 100 mmscfd," Hendra said.
The Arun plant, built concurrently with the transmission line, was previously a refinery which produced liquefied natural gas (LNG). As gas supply began to recede, the state-owned oil and gas company realized a change needed to be made.
Pertamina began to re-purpose the facility into an LNG storage and regasification terminal in November 2013. The plant will hold up to 400 million standard cubic feet of gas per day, or equal to three million tons of gas per year.
Once operation begins on both the pipeline and the regasification terminal, Pertamina will have spent up to $570 million on both projects.
Potential customers lining up to use the transmission line include PLN's Belawan factory and fertilizer companies in Aceh and North Sumatra, where the "gas supply is expected to spur economic growth," Hendra said
Posted by: "Sunny" <ambon@tele2.se>
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