Exxon withholds permission for Pertagas to build pipeline

By Godang Sitompul

ExxonMobil Indonesia (EMOI), the subsidiary of American energy giant ExxonMobil Corp, has yet to issue permission for state owned firm PT Pertamina to build the Arun-Belawan gas pipeline through its operating area.

?We have yet to gain a permission to pass through the ExxonMobil area. Pertagas has officially submitted its request to ExxonMobil, but thus far, there is no result,? Pertamina?s Gas and Power Director Hari Karyliarto told Petromindo.com.

When asked for confirmation, EMOI?s Senior VP Asep Sulaiman told Petromindo: ?ExxonMobil has been and is committed partner to the Government of Indonesia in developing energy, and is supportive of initiatives in providing energy security to Indonesia and local industries.?

?ExxonMobil supports the proposed LNG Regasification conversion plan, with the consideration that the ability to meet existing LNG contracts and process gas at least through the end of the PSC term is preserved,? he added.

Pertamina is converting the Arun LNG plant in Lhok Seumawe, Aceh into an LNG regassification plant and is building a pipeline to channel gas from Arun to North Sumatra. According to Hari, the progress of the pipeline construction has reached 50 percent.

Editing by Johannes Simbolon