Pertagas banks on Cepu gas for its pipeline project

PT.Pertagas, a gas distribution and transportation subsidiary of state oil and gas company PT.Pertamina, said it would bank on gas production from Cepu block to be able to develop its Gresik (East Java)?Semarang (Central Java) pipeline project.

Pertagas's CEO Suharyanto told Petromindo.Com on Monday that development of Gresik-Semarang pipeline would depend on the plan of development of the Jambaran and Alas Tua fields, which is expected to be completed by mid-year.

?We want to know the production volume and onstream schedule of the gas fields before deciding on developing the pipeline,? he said. According to Suharyanto, interim evaluation on the block showed production rate of 300-350MMCFD from the fields, but there is possibility to increase production to 500MMCFD.

Gas from Cepu block will be sold to state electricity firm PT Perusahaan Listrik Negara (PLN) and state fertilizer firm PT.Petrokima Gresik. Pertagas will transport the gas, he said.

?The pipeline route, pipeline size and investment needed will heavily depend on Alas Tua and Jambaran PoD,? he said.

Cepu block, which is jointly operated by Pertamina and ExxonMobil, is expected to start gas production in 2013, former Deputy CEO Iin Arifin Takhyan said in January 2009.

Pertagas through Pertamina was granted special right to develop the pipeline segment for 25 years in 2006. (godang)