BPH Migas urges PGN to settle Jambi Merang gas delivery issue

Downstream oil and gas regulator BPH Migas called on state-owned gas distributor firm PT Perusahaan Gas Negara Tbk (PGN) to help resolve an inssue on gas transportation from Jambi Merang field - owned by JOB Talisman Energy and PT Pertamina Hulu Energi Jambi Merang - to a company owned by Batam regional government for further distribution to industries in the area and to PLN Batam.

The gas from the field which amounts to 20 MMSCFD is planned to be delivered through PGN?s pipeline which is stretching from Sumatera to Singapore via Batam and managed by PGN?s subsidiary PT Trans Gasindo (TGI) .

Heru Wahyudi, Member of a committee at BPH Migas, told Petromindo.com that one of consumers of Jambi Merang gas is Batam branch of the state utility company PT PLN (PLN Batam). ?This should be an open-access pipe. The bottomline is that if gas is not delivered to Batam, it will have significant impact on the city?s industries and PLN would have to consume more expensive fuel to generate power for the public and other users".

PGN appeared to be reluctant to open the gas pipeline. "We are trying to resolve the problem. BPH Migas has had to remind PGN that the pipeline is an open access pipeline,? said Heru.

Heru said the gas price between the producer and the buyers in Batam has been agreed upon back in 2010. However, there is no agreement yet on the gas transportation means. The gas contract supply will last for eight years. (godang)