BPH Migas set toll fee for Arun-Belawan pipeline
Friday, October 31 2014 - 01:16 AM WIB
Downstream regulator BPH Migas set the initial toll fee for the Arun-Belawan gas pipeline owned by PT Pertagas, a subsidiary of state owned oil and gas firm PT Pertamina at US$2.53 per mscf.
BPH Migas? Gas Director Joko Siswanto told Petromindo.Com Thursday the price is effective for one year since the completion of the construction of the pipeline.
?After that, the toll fee will be reviewed since the value of the whole asset will be only known after the development of the pipeline has been completed and the O&M (Operation and Maintenance) costs will be only known after one year of operation.
?The toll fee mentioned above is calculated based on the O&M assumptions because the pipeline has yet to come into operation,? Joko said.
He said the initial toll fee is set relatively high because only 50 percent of the pipeline will be utilized in the first year.
When asked for comment, Pertagas? President Director Hendra Jaya said he had yet to be infromed by BPH Migas about the toll fee.
?I have yet to get any data about it,? he said.
The Arun-Belawan pipeline is categorized as an ?open access? facility, which means any party can use the pipeline provided they pay a fee to the owner, Pertagas.
State owned electricity firm PT Perusahaan Listrik Negara (PLN) wants to use the pipeline to deliver gassified LNG for its power plant in Belawan. PLN wants to buy LNG directly from producers and use the Arun regassification plant owned by Pertagas to regassify the LNG and deliver it through pipeline to Belawan.
In June this year, PLN's Fuel Oil and Gas Division Head Suryadi Mardjoeki said PLN and Pertagas had agreed on all terms for the draft Gas Transportation Agreement, except for one issue: the toll fee. Both firms agreed to let BPH Migas to decide on the toll fee.
Editing by Johannes Simbolon