Gulf Indonesia plans to sell gas to Sumatra pulp & paper firms

Oil and gas firm Gulf Indonesia Resources (GIR) said Monday it was currently seeking to sell natural gas to three pulp and paper firms that operates near Grissik-Duri gas pipelines operated by state gas firm PGN, according to the company?s executive.

The Grissik-Duri pipeline supplies gas from GIR?s operated Corridor block in South Sumatra to PT Caltex Pacific Indonesia?s Duri Steamflood oil production operations in Central Sumatra.

Supramu Santosa, GIR's senior vice president for administration affairs told Petromindo.com in an interview that the three pulp and paper mills would be able to consume up to 50 million standard cubic feet of gas per day. He did not mention the pup and paper firms? names. However, there are several major pulp and paper firms that are operating in central part of Sumatra such as Indah Kiat Pulp and Paper, Riau Andalan Pulp and Paper and Lontar Papyrus Pulp and Paper.

Aside from the three firms, Supramu said that Pertamina JOB Lirik was also seeking to buy an unspecified amount of gas from GIR.

Supramu did not say when the deals were expected to be sealed. However, he said that the delivery would have to wait for the completion of compressors installation to expand the capacity of Grissik-Duri gas pipeline that was scheduled to be completed in the third quarter of next year. (alex)