BPH Migas cuts down Arun-Belawan gas pipeline toll fee
Tuesday, August 29 2017 - 06:24 AM WIB
Petromindo|Lucky
Downstream regulator BPH Migas is set to announce on Wednesday a lower toll fee in the transmission of gas via the 350-km Arun-Belawan gas pipeline.
A source told Petromindo.com on Tuesday that the gas transportation toll fee has been lowered to US$1.546 per mmbtu from the previous tariff of $2.53 per mmbtu.
?The lower toll fee in Arun-Belawan pipeline is made possible by cutting down the profit (margins) of Pertagas and Pertagas Niaga in the transmission and distribution of the gas pipeline. In the upstream side, there will be request for a reduction in the LNG price from suppliers Arun LNG and Tangguh LNG,? the source said.
PLN has long been demanding Pertagas to lower the Arun-Belawan gas toll fee to help reduce electricity production cost. PLN has been using the pipeline to transmit gas from the Arun LNG regasification facility in Aceh Province to its power plant in Belawan, North Sumatra, under a 15-year contract.
A report in this portal on June 19, quoting PLN?s Head of Gas and Fuel Division Chairani Rachmatullah as saying that the utility company has reached agreement with PT Pertamina, the parent of Pertagas, to lower the toll fee to $1.76 per mmbtu.
Editing by Reiner Simanjuntak