Govt assigns PGN to build, operate Pemping Island pipeline

The Ministry of Energy and Mineral Resources has issued a decree to assign IDX-listed state owned gas firm PT Perusahaan Gas Negara Tbk (PGN) to build and operate a gas pipeline that will be able to bring gas from the Natuna Islands to Batam.

The ministerial decree was signed by former minster Sudirman Said on July 19, 2016.

Under the decree, PGN must build a pipeline that will link the West Natuna Transportation System (WNTS) to Pemping Island. The WNTS, one of the world?s longest subsea gas pipeline with a length of 650 km, has been used for 15 years to channel gas from the fields in Natuna Islands to Singapore. The WNTS pipeline passes an area which is located about 5.5 km from Pemping. Meanwhile, Pemping is located 13.7 km offshore Batam.

In the decree, PGN was assigned to build the WNTS-Pemping pipeline as well as its supporting infrastructures using its own funds.

The decree further says PGN must coordinate with state owned electricity firm PT Perusahaan Listrik Negara (PLN) in making Front End Engineering Design with SKK Migas as facilitator.

The plan to bring gas from Natuna Island has been in place for many years but has never been realized. The ministry during the Susilo Bambang Yudhoyono administration instructed that the gas from Gajah Baru field in Block A Natuna PSC operated by British firm Premier Oil Inc. should be delivered to Batam through Pemping to meet the fuel needs of power plants in the industrial island. Since the project has never been realized, Premier now channels the gas to Singapore.

Editing by Johannes Simbolon