GTA for Arun gas is final, ready to be signed
Thursday, June 19 2014 - 07:46 AM WIB
The draft Gas Transportation Agreement (GTA) for the use of the Arun-Belawan gas pipeline between PT Pertamina Gas (Pertagas), a subsidiary of state owned oil and gas firm PT Pertamina (Persero), the owner of the project, with state owned electricity firm PT Perusahaan Listrik Negara (PLN) has been finalized and is ready to be signed, said a top official of Pertagas.
"We target to sign the GTA before the commissioning of the pipeline," Pertagas President Director Hendra Jaya told Petromindo.com.
He said, in the GTA, Pertagas will leave it up to downstream regulator BPH Migas to decide on the toll fee. "We have also discussed the toll fee with PLN based on the principle of B to B."
However, PLN's Fuel Oil and Gas Division Head Suryadi Mardjoeki asserted that the draft GTA is not final yet since Pertagas has yet to submit the toll fee figures unless both firms agree that BPH Migas will directly set the toll fee.
"Indeed, negotiation on the draft agreement is already finished. We are waiting for the toll fee proposal from Pertamina to be discussed," Suryadi said.
Meanwhile, Gas Director at BPH Migas Umi Asngadah explained that the agency will first apply the so-called ?initial tariff? for the use of the Arun-Belawan pipeline and the toll fee will decrease in tandem of the increase in the volume of gas delivered through the pipeline
"In the first stage, the initial tariff of 3.2 cents will be imposed if the gas flows at the rate of 120 mmscfd. The tariff will decrease to 1.9 cents when it reaches the full capacity of 200 mmscfd," she said.
Pertagas is building the 450-km pipeline connecting the Arun LNG plant in Aceh with PLTGU Belawan power plant in North Sumatra to channel gas from the LNG plant which is being modified into an LNG regassification plant, to the power plant owned by PLN.
The pipeline is categorized as an open access pipeline, meaning any party can use the pipeline on a toll fee.
?The construction of the pipeline has been running smoothly and has been 83 percent completed,? Hendra said, adding that the project is projected to be commissioned in October of this year as scheduled.
Editing by Johannes Simbolon