Pertamina plans to pipeline South Sumatra's gas to Arun LNG center

State oil and gas company Pertamina said it planned to build pipeline to transmit natural gas from South Sumatra to the Arun liquefied natural gas (LNG) center in Aceh to cope with gas shortage experienced by the center.

Pertamina's spokesman Toto Suparto said on Tuesday he did not know when the planned pipeline project would start but he said the project was still unfeasible at present given the small gas reserves discovered in South Sumatra

"That's why Pertamina is now boosting gas exploration in South Sumatra. We hope to find much more gas to make the project feasible," Toto told Petromindo.Com.

Pertamina and its American contractor Exxon-Mobil are currently operating only three of the six LNG trains in Arun due to the lack of gas supplies.

Gas fields in Aceh had been much depleted and Pertamina and its contractors were facing difficulties to explore for new gas in the area due to the violent conflicts between the local separatists group and the armed forces.

An about 550-kilometer pipeline have been built by the state owned gas distribution company PT PGN to link gas fields in South Sumatra operated by Canadian firm Gulf Resources to oil operation of PT Caltex Pacific Indonesia in Riau.

Pertamina needs only to expand the South Sumatra-Riau gas pipeline to transmit gas from South Sumatra to Aceh. (*)