Duri-Dumai gas pipeline to start construction end of this year
Wednesday, October 18 2017 - 01:36 AM WIB
Petromindo|Lucky
Construction of the Duri-Dumai gas pipeline project in Riau Province is expected to start at the end of this year, Bisnis Indonesia reported on Wednesday.
The paper quoted Agung Kuswardono, Head of the Oil and Gas Infrastructure Development Section at the Ministry of Energy and Mineral Resoruces, as saying that groundbreaking of the project is scheduled for the end of this year.
State-owned oil and gas firm PT Pertamina signed on June 9 an agreement with state-controlled gas distribution firm PT PGN Tbk for cooperation in the development and operation of the Duri-Dumai gas pipeline project.
Pertamina will hold a 60 percent interest in the project, while the remaining 40 percent to be held by IDX-listed PGN. Pertamina and PGN will jointly develop and operate a planned 67-km gas pipeline linking Dumai and Duri, which will be used to transmit Pertamina?s gas to its Dumai refinery and distribute PGN?s gas to its customers.
The two firms will form a joint management committee, which will then set up a joint venture company to develop the project, which is targeted to be completed in 18 months.
The signing of the agreement comes following a 2016 decree issued by Minister of Energy and Mineral Resources Ignasius Jonan for the two companies to cooperate in the development of the Duri-Dumai gas pipeline project. (*)