Pertamina EP to stream gas from Gundih block in 2013

Following discovery of gas reserves in the Central Java regency of Blora, oil and gas producer PT Pertamina EP has set a target of streaming gas from its Java Gas Development Project (PPGJ) at Gundih block in 2013.

To realize the commitment the company has initiated construction phase of a Central Processing Plant (CPP) area at the block.

Pertamina EP works with a consortium of PT Inti Karya Persada Teknik and PT Adhi Karya (Persero) Tbk to build the CCP under a contract worth US$120 million, which was signed on Wednesday.

?The CCP will have a sales capacity of 50 MMSCFD,? PPGJ Pertamina EP General Manager Dody Sasongko said.

The construction project will last 730 days, starting June 1, 2011. Local workers will gradually reach 60 percent of the workforce needed to build the facility.

The block?s production will be distributed through pipes belonging to PT Sumber Petrindo Perkasa under a sales contract signed on Dec. 21, 2006. State electricity company PLN will use the gas to fire its Tambak Lorok power plant in Semarang for 12 years.

Pertamina EP is currently the largest supplier of domestic gas need, with 34 percent going to state gas distributor PGN, 20 percent to the industry, 18 percent to fertilizer producers and 25 percent for power plants. The rest is for Pertamina refineries.

Pertamina EP is an upstream unit of state oil, gas company PT Pertamina (Persero)

Gas production reached 869 MMSCFD in 2006 and has increased by 12.7 percent in the following year. The production surpassed 1,000 MMSCFD mark in 2008 and climbed to 1,043 MMSCFD and 1,054 MMSCFD in the next two years respectively. (godang)