Pertamina, PGN sign gas pipeline contract<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina and several
\nproduction sharing contractors (PSC) agreed here on Friday to
\ncooperate with the state-owned PT Perusahaan Gas Negara (PGN) in
\nthe transportation of gas from Jambi and South Sumatra to
\nSingapore.<\/p>\n
Under the agreement, Pertamina contractors Gulf Resources
\n(Grissik) Ltd., Gulf Resources (South Jambi) Ltd. -- which are
\nboth the subsidiaries of Canada's Gulf Resources -- and Santa Fe
\nEnergy Resources Jabung Ltd. -- a unit of America's Santa Fe
\nEnergy Resources Ltd. -- will use the 477-kilometer pipeline to
\nbe built by PGN to transport gas from their production fields in
\nJambi and South Sumatra via Batam island to Singapore's Power
\nGas.<\/p>\n
\"This (gas transportation agreement) is one step in the effort
\nto realize our plan of exporting natural gas to our neighbor
\nSingapore,\" Minister of Mines and Energy Kuntoro Mangkusubroto
\nsaid in his speech after witnessing the signing ceremony.<\/p>\n
Pertamina signed last year a memorandum of understanding to
\nsupply Power Gas, a unit of Singapore Power, with natural gas
\nstarting from 2001. The gas will be used to feed the island's
\npower plants.<\/p>\n
Pertamina, Gulf and Santa Fe are preparing to strike another
\ndeal with Power Gas in the near future.<\/p>\n
Pertamina and its contractors also plan to distribute gas to
\npower plants and industries in Batam.<\/p>\n
Under the gas transportation letter of agreement signed on
\nFriday, PGN will install 477 kilometers of gas pipeline, with a
\ndiameter of 71 centimeters. The plans include a 282-km pipeline
\nfrom Sakernan in Jambi to Batam, a 60-km pipeline from Batam to
\nSingapore via Bulan island, and a 135-km pipeline from Grissik in
\nSouth Sumatra to Sakernan.<\/p>\n
PGN has been operating a 544-km pipeline transporting gas from
\nGulf's gas fields in Grissik to PT Caltex Pacific Indonesia's oil
\nfields in Duri, Riau.<\/p>\n
The Grissik-Duri pipeline has a capacity of 310 million cubic
\nfeet per day (MMCFD) of gas, while the new Sumatra-Singapore
\npipeline will be designed to channel about 300 MMCFD of natural
\ngas.<\/p>\n
The export of gas to Power Gas, if realized, will be
\nIndonesia's second gas export contract with Singapore.<\/p>\n
Pertamina struck early this year a deal to supply Singapore's
\nSembawang Corporation (SembCorp) with natural gas extracted from
\nfields west of the Natuna islands by Premier Oil of Britain, Gulf
\nResources and America's Conoco.<\/p>\n
The supply of gas from the South China Sea to Singapore is
\nalso scheduled to start in 2001.<\/p>\n
Kuntoro noted that aside from transporting gas from Sumatra to
\nSingapore, PGN's gas pipeline network was expected to spur
\neconomic growth in Sumatra's east coast, including areas around
\nJambi, Kuala Tungkal, Pekanbaru, Batam and Bintan, due to the
\navailability of natural gas as a clean and cheap fuel.<\/p>\n
\"As such, (the pipeline network) will attract foreign and
\nlocal investors to the area and the presence of the investors are
\nexpected to increase the welfare of the local people,\" Kuntoro
\nsaid.<\/p>\n
Kuntoro said PGN's pipeline will also encourage more investors
\nto explore for gas in Sumatra's east coast, as the problem of
\ntransportation will have been solved.<\/p>\n
PGN will build the pipeline with loans from the Asian
\nDevelopment Bank, Japan Exim Bank and other international banks,
\nbut the company did not reveal the amount of the loans. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-pgn-sign-gas-pipeline-contract-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}