BPH Migas to set toll fee of Arun-Belawan pipeline

By Godang Sitompul

Downstream regulator BPH Migas will set the toll fee of the Arun-Belawan pipeline once state owned oil and gas firm PT Pertamina, the owner of the project, has finished the construction of the pipeline, an official of the agency said on Monday.

Pertamina is building the 450-km pipeline connecting the Arun LNG plant in Aceh with PLTGU Belawan power plant in North Sumatra to channel gas from the LNG plant which is being modified into an LNG regassification plant, to the power plant owned by PT Perusahaan Listrik Negara.

The pipeline is categorized as an open access pipeline, meaning any party can use the pipeline on a toll fee.

Umi Asngadah, Gas Director at BPH Migas, said that in setting the toll fee, BPH Migas will consider factors such as the total investment put by Pertamina, operating costs, the margin expected by Pertamina and the volume of transmitted gas.

Pertamina said the construction of the pipeline has been 54 percent completed.

Editing by Johannes Simbolon