Pertagas Niaga supplies LNG for power plant in Tanjung field

Monday, December 18 2017 - 01:15 AM WIB

Gas distribution company PT Pertagas Niaga (PTGN) had on December 5 started delivery of LNG for a power plant at the Tanjung oil field in Central Kalimantan Province operated by affiliated company PT Pertamina EP (PEP).

Both PTGN and PEP are subsidiaries of state-owned oil and gas firm PT Pertamina.

PTGN said in a statement on Sunday that the LNG will be converted into gas as fuel for a power plant providing electricity to support the operation of the Tanjung field including for oil pump, water injection and water treatment facilities as well as for the housing facilities of PEP employees at the field.

The statement said that the use of gas, instead of diesel, will help cut down operating cost of Tanjung field by 20-30 percent.

PTGN President Director Linda Sunarti said in the statement that the LNG transported from its Filing Station Plant 26 at the PT Badak NGL compound in Bontang using eight ISO tank trucks travelling some 550-km in distance to the Tanjung field area.

Under a one-year contract with PEP, PTGN will supply 0.7-1.1 mmscfd of gas to Tanjung field.

PTGN has started LNG distribution business via ISO tanks since 2014. The company has also been distributing LNG to a hospital, hotels and shopping malls, and to mining firms in East Kalimantan.

The company said the LNG business via ISO tanks is expected to further expand as there are many areas in the country which have yet to be connected by gas pipeline networks.

Editing by Reiner Simanjuntak

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