BPH Migas asks Medco to supply gas to Pertagas? pipeline

By Godang Sitompul

Downstream regulator BPH Migas called on PT Medco EP Indonesia as the operator of Block A PSC in Aceh, and upstream authority SKK Migas to supply gas from the block to the Arun-Belawan gas pipeline being built by PT Pertamina Gas (Pertagas).

?Gas from Block A has been allocated for PIM (state owned fertilizer firm PT Pupuk Iskandar Muda). Still, we expect it will also supply gas to Pertagas at the rate of 4 mmscfd for the Arun-Belawan pipeline,? Umi Asngadah, Gas Director at BPH Migas, recently told Petromindo.com.

Umi explained that the agency has yet to decide on the toll fee of the Arun-Belawan pipeline since the project has not been completed yet. ?The toll fee is calculated based on the investment plus operational and maintenance cost plus margin multiplied by the volume of transmitted gas,? she said.

The Arun-Belawan pipeline that will be used by Pertamina to transmit gas from Aceh to North Sumatra is an open access facility, meaning any party can use provided they pay the toll fee.

?God willing, the state is now able to build a gas pipeline that the public in general will be able to avail themselves of,? she said.

The pipeline will transmit gas from the Arun LNG plant in Lhokseumawe, Aceh which is being converted into an LNG Regassification Plant. A total of four cargoes of LNG from the Tangguh LNG plant havebeen secured for the first operation of the pipeline. The LNG belongs to state owned electricity firm PT Perusahaan Listrik Negara (PLN).

At present, she said, Pertagas is seeking other LNG supplies for the pipeline.

Editing by Johannes Simbolon