Pertagas, PLN finalizing GTA for gas from Arun

By Godang Sitompul

PT Pertagas, a subsidiary of state owned oil and gas firm PT Pertamina, and state owned electricity firm PT Perusahaan Listrik Negara (PLN) are now finalizing negotiation on the Gas Transportation Agreement (GTA) for the use of the Arun-Belawan gas pipeline now under construction by Pertagas.

?We are now in intensive talks on the terms in the GTA. We hope it can be finalized before the commissioning of the pipe,? Pertagas?s President Director Hendra Jaya told Petromindo.com.

He said the 340 km-long Arun-Belawan pipeline is expected to start operation in April next year.

PLN will use the pipeline to transport the gas it will buy from the Tangguh LNG plant in West Papua to its power plant in Belawan. The LNG will be unloaded into the Arun LNG plant where it will be regassified before being pipelined to the Belawan power plant. Pertamina is now working to convert the Arun LNG production plant into an LNG regassification plant.

Hendra said the Arun-Belawan project has been running smoothly and Pertagas faces no financial difficulties to continue the project despite the sharp depreciation of the rupiah against the dollar.

PLN?s Fuel Oil and Gas Division Head Suryadi Mardjoeki confirmed that PLN is now in intensive talks to finalize the GTA with Pertagas.

Editing by Johannes Simbolon