Pertamina operates Pagerungan-Gresik gas piping line

State oil and gas company Pertamina has taken over the operation of East Java (Pagerungan-Gresik) gas pipe line from PT Transjayagas Pipeline of the Bimantara Group.

Pertamina's upstream director Gatot Karyoso Wiroyudo said that Pertamina took over the operation of the 430-kilometer of the pipeline from Transjayagas because Transjayagas had recouped its investment in the pipeline through the build operate transfer scheme.

He noted that the preparation for Pertamina to take over the operation of the pipeline had been taken since two years ago.

"It's true that Bimantara was involved in its operation, but it is now operated by Pertamina, that has taken over its operation from Transjayagas," Gatot Karyoso said.

The head of Pertamina's upstream gas division, Sofyan Farhan, said that Pertamina teamed up with PT Titis Sampurna to operate the pipeline.

Sofyan, however, refused to give details on terms and condition of the build-operate-transfer (BOT) agreement with Transjayagas. He also refused to say how many years Transjayagas should operate the pipeline.

Sofyan only said : "What's more important is that the debt has been repaid and there has been a proper return on investment, and therefore the BOT is over," he said.

Gator Karyoso said that all the debt payment and investment returns would be reached this year. And it is now the time for both parties to negotiate the toll fee for transporting gas through the pipeline.

"This year all the debt will be repaid, and therefore, currently, we are negotiating how the toll fee should be calculated," he said.

Karyoso said that the toll fee for transporting around 350 million cubic feet of gas per day through the pipeline would be cut by around 30 percent from 72 U.S. cents per Million British Thermal Unit (MMBTU) of gas transported through the pipeline after the takeover of its operation. (*)