Gas allocated for industrial consumers along Semarang-Gresik pipeline

By Godang Sitompul

The authorities have allocated 85 mmscfd of gas from the Cepu block and gas from the regasification of 16 cargoes of LNG at PT Nusantara Regas-operated floating storage and regasification unit (FSRU) for industrial consumers along the planned 262-km gas pipeline linking Semarang, in Central Java, and Gresik, in East Java.

The downstream oil and gas authority Bph Migas has requested the local regents to determine the list of the offtakers of the gas to be distributed via the pipeline, said Umi Asngadah, Direcor of Gas at Bph Migas told Petromindo.com Monday.

Umi said that Bph Migas has in fact urged one of the off takers, fertilizer company PT Pupuk Kujang Cikampek, to build a fertilizer plant near the gas pipeline route area. Gas from the Cepu block will be allocated for the fertilizer plant.

PT Pertamina Gas (Pertagas) has targeted to complete the development of the 500 msscfd-capacity gas pipeline by the end of 2014. Once the project has been completed, Pertagas will become the dominant gas trader in along Semarang-Gresik area, Pertagas Corporate Secretary Eko Agus Sarjono said on October 29.

Editing by Reiner Simanjuntak