Pertamina units sign gas deals

Two subsidiaries of state-owned oil and gas firm PT Pertamina signed a number of gas deals on Tuesday on the sidelines of the IndoPIPE 2016 Conference & Exhibition.

Pertamina said in a statement that its gas distribution subsidiary company PT Pertamina Gas (Pertagas) signed gas transport agreements with PT Parna Raya and PT Inti Alasindo.

Meanwhile, gas trading company PT Pertagas Niaga signed an agreement with PHE Offshore North West Java (ONWJ), EMP ONWJ Ltd, KUFPEC Indonesian (ONWJ) B.V.

The statement said that the gas transport agreements signed by Pertagas with Parna Raya and Inti Alasindo are for the delivery each of 40 mmscfd of gas, the gas source of which is Husky-CNOOC Madura Ltd.

Gas will be channeled from BD field to the Keraton onshore receiving facilities (ORF) owned by HCML, which will later be tied in with Porong-Grati open access gas transmission pipeline, to be completed by Pertagas in the first quarter of 2017.

The main consumer for the gas is a power plant owned by PT Indonesia Power in Grati, Pasuruan Regency, East Java. Gas belonging to Parna Raya will be entirely allocated for the Grati plant, while that of Inti Alasindo will be partly allocated for industries in East Java.

Meanwhile, Pertagas Niaga signed a gas sales and purchase agreement with PHE ONWJ, EMP ONWJ Ltd, and KUFPEC Indonesia (ONWJ) B.V. as shareholders of the ONWJ block. The gas volume set in the contract is 1.24 TBTU, with daily delivery of 3 BBTUD in 2016, and 8 BBTUD in 2017.

The gas will be delivered via the Cimalaya ORF, and existing gas pipeline owned by Pertagas in West Java to support industries in the province.

Editing by Reiner Simanjuntak