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Pertamina Gas signs gas transportation and sales agreement

JAKARTA (RAMBUENERGY.com) – PT Pertamina through its subsidiary PT Pertamina Gas (Pertagas) continues its efforts to increase supply of gas to meet the gas needs of domestic industries and power sector.

On Tuesday(Aug. 30), Pertagas, on the sideline of IndoPIPE 2016 conference in Jkaarta, Pertagas signed a number of gas business agreements. First, gas transportation agreement with PT Parna Raya and PT Inti Alasindo, second gas sales agreement (PJBG) between PT Pertagas Niaga, a subsidiary of Pertagas, and PHE Offshore North Wests Java (ONWJ), EMP ONWJ Ltd, KUFPEC Indonesia (ONWJ) B.V.

As for the first deal, Pertagas will transport 40 million standard cubic feet of gas per day (MMSCFD) to each Parna Raya and Inti Alasindo from Husky-CNOOC Madura Limited (HCML), in offshore East Java.

Gas will be transported from BD field to Oshore Receiving Facilities (ORF) Kraton owned by HCML and then tie in to gas transmission open access Porong-Grati, through transmission pipeline Semare with a lenght of around 12 km, which will be built by Pertagas. The pipeline will start commercial operation in the first quarter 2017.

The consumer of the gas is a power plant owned by Indonesia Power (IP) in Grati, Pasuruan Regency. The cooperation is part of the efforts to support the government’s drive to build 35,000 MW of power plant in the next five years or so.

Gas owned by Parna Raya will be used by IP Grati, while gas owned by Inti Alasindo will be used to meet industries need in East Java. The gas will be transported through existing pipeline linking Porong and Gresik owned by Pertagas.

As for the second deal, the amount of gas sales purchase agreement raeched a total of 1.24 trillion british thermal unit (TBTU), with daily delivery of 3 BBTUD in 2016 and 8 BBTUD in 2017.

Gas will be sent through Onshore Receiving Facility (ORF) Cilamaya and existing pipeline owned by Pertagas in West Java to support gas needs of industries in West Java, such as ceramic, glass, automotive, heavy equipment, building materials and food producers.

“The gas sales agreemetn and gas transportation agreement by Pertamina and its affiliates with their business partners are a concrete commitment of Pertamina as a state owned energy company to ensure supply of energy to the national strategic industries and power sector,” said Director for Gas and Renewable Energy of Pertamina Yenni Andayani.

President Director Pertagas Hendra Jaya added that the “cooperation is part of efforts to develop business portfolio of Pertagas, in particular in gas commercial and transportation. In addition to benefit Pertamina’s business sustainability, the agreement signed today will certainly have positive impact on the national economy.”
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