Pertagas signs HoA to send gas to Medan Industrial Park
Wednesday, November 13 2013 - 12:28 PM WIB
Pertagas said in a statement the HoA was signed at Pertamina?s headquarters in Jakarta . Present at the ceremony were Pertagas? President Director Hendra Jaya, Pertagas Niaga?s President Director Jugi Prajugjo, KIM?s President Director Gandhi D. Tambunan and Pertamina?s Gas Director Hari Karyuliarto.
The HoA followed the Memorandum of Undertanding (MoU) signed by both parties on July 4, 2013.
KIM will become an anchor buyer for the gas to be delivered by Pertagas Niaga from the Arun LNG plant in Lhokseumawe, Nangroe Aceh Darussalam to North Sumatra. Two other anchor buyers are PLTGU Belawan combined cycle power plant in the Balawan port owned by state owned electricity firm PT Perusahaan Listrik Negara (PLN) and the Sei Mengkei Special Economic Zone in Simalungun regency which is being developed by state owned plantation firm PT Perkebunan Nusantara III.
According to the statement, Pertagas Niaga will supply KIM with a total of 75 mmscfd of gas through the Arun-Belawan (Arbel) open access gas pipeline which is being developed by Pertagas. A distribution pipeline will be built to link the Arbel transmission line to the industrial park.
Of the 75 mmscfd supply, 40 mmscfd will be used to meet the industrial demand at KIM and the remaining 140 mmscfd to supply a Independent Power Producer (IPP) which will build a 140 MW power plant to meet the KIM need. At present, the KIM Area 4-6, which covers a total area of 310 ha, need a total power supply of 450 MW but only 300 MW of which can be supplied by PLN.
KIM covers a total area of 514 ha in Mabar area of Medan. The current gas crisis that hit North Sumatra has dealt a heavy blow to the KIM tenants, bringing three firms into bankruptcy and forcing two to shut down their operations.
Editing by Johannes Simbolon