PEP adds gas delivery point for PLN in Tarakan

PT Pertamina EP (PEP), a subsidiary of state owned oil and gas firm PT Pertmaina, has added another delivery point to its gas supply system in Tarakan, North Kalimantan, allowing the firm to directly supply gas from its Bunyu field to the power plant owned by state owned electricity firm PT Perusahaan Listrik Negara (PLN) in the city.

The operation of the new delivery point was marked in a ceremony held on April 20, PEP said in a statement on Tuesday.

Before, PEP channeled gas to the Binalatung power plant in Pantai Amal sub-district of Tarakan owned by PLN through the gas pipeline owned by PT Medco Energi Internasional Tbk. The 30-km gas pipeline is used to deliver gas to Medco?s Gas Plant G8, where pressure was added to the gas so that it could be delivered to the power plant.

PEP has added another delivery point by connected Medco?s pipeline with the pipeline owned by Manhattan Kalimantan Investment (MKI) Pte Ld through a tie-in mechanism.

The amount of gas delivered from Bunyu field to Binalatung power plant now averages 1.7 mmscfd, while gas delivery to Gas Plant G8 averages 3.7 mmscfd.

?Thus, total gas volume delivered by PEP from Bunnyu field to PLN Tarakan now totals 5.4 mmscfd, higher than the existing contract of 4 mmscfd,? PEP?s Public Relation Manager Muhammad Baron said.

Editing by Johannes Simbolon