Pertagas concludes land lease negotiation for gas pipeline project
Tuesday, January 3 2017 - 02:43 AM WIB
Petromindo
Gas distribution company PT Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas firm PT Pertamina, has finally secured a crucial agreement with the Grobogan Regency administration in Central Java Province for the lease of land to be used in the development of a 267-km gas pipeline linking the province and East Java.
Pertagas in December of last year concluded talks with the Grobogan administration for the land lease, following meetings facilitated by the downstream oil and gas regulator BPH Migas.
Pertagas initially wanted to lease the land for 25 years, but the local administration wanted to limit the lease for only three years. ?There has been a solution. The land for the pipeline in Grobogan will be leased for three years, and can be extended at least eight times, and there will be MoU between Pertagas and the local administration,? Gas Director at BPH Migas Umi Asngadah told Petromindo.com.
As has been reported previously by this portal, EPC progress of the pipeline project linking Gresik in East Java and Semarang in Central Java reached 76 percent as of November 2016.
The 28-inch diameter pipeline, with a capacity of 500 mmscfd, will help increase gas supply for industries along the route. In 2016-2018, the pipeline will obtain gas supply from Kangean and Husky at a volume of 30 mmscfd. Additional supply will come from Cepu?s Jembaran-Tiung Biru field and Cendana at a volume of 100 mmscfd, as reported by this portal previously.
The Gresik-Semarang pipeline is expected to be on stream in 2017.
Editing by Reiner Simanjuntak