Pertagas ready to deliver gas to Unilever

By Godang Sitompul

PT Pertamina Gas (Pertagas) is now ready to deliver gas to consumer goods producer Unilever in Sei Mengkei special economic zone (KEK Sei Mengkei) in North Sumatra.

"We are only waiting for Unilever?s readiness (to receive the gas). The gas is ready to flow,? Pertagas? President Director Hendra Jaya told Petromindo.com on Friday, adding that the delivery to Unilever is likely to start in early April.

The gas will be channeled through the pipeline stretching from Medan Industrial Zone (KIM) to Sei Mengkei Special Economic Zone (KEK Sei Mengkei). According to Hendra, the KIM-KEK Sei Mengkei is now in the tie-in process to link it to the Arun-Belawan pipeline, which is used to transmit gas from Aceh to North Sumatra.

The gas will be channeled to Unilever at a volume rate of 3-4 mmscfd. According to Jugi Prajogo, President Director of PT Pertagas Niaga, a subsidiary of Pertagas, under conract, Unilever will get gas supply from Pertagas over a period of five years at the price of around $13 per mmbtu.

Editing by Johannes Simbolon