Pertamina, PGN sign agreement on Duri-Dumai gas pipeline project
Saturday, November 11 2017 - 03:18 AM WIB
PT Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas firm PT Pertamina, signed on Friday a joint operation agreement (KSO) with state-controlled gas distribution firm PT PGN Tbk for the planned 57-km gas pipeline project linking Duri and Dumai in Riau Province.
The Office of the State Minister of State Owned Enterprises said in a statement that Pertagas will hold 60 percent interest in the estimated US$52 million gas pipeline project, while PGN the remaining 40 percent.
The KSO was signed by Pertagas President Director Suko Hartono and PGN Director of Infrastructure and Technology Dilo Seno Widagdo.
Also on Friday, the two companies signed an agreement with state-owned construction firm PT Hutama Karya, to allow the gas pipeline project to pass through underground the Pekanbaru-Dumai toll road currently being developed by Hutama. About 40-km of the pipeline will be developed under the toll road.
The gas pipeline is expected to be on stream in October 2018, the statement said quoting Dilo. Previously, it was said that construction will start at the end of this year.
Gas for the pipeline will come from the Corridor block, operated by ConocoPhillips, in South Sumatra. Additional supply will come from Bentu block, operated by PT Energi Mega Persada (EMP).
Total gas supply volume to be transmitted to industries in Riau and Pertamina?s refinery in Dumai via the pipeline is 200 mmscfd, the statement said.
Editing by Reiner Simanjuntak