PGN says additional gas delivery to Caltex on schedule

State gas firm PGN said Monday that the work to boost Grissik-Duri pipeline capacity which transported gas from Corridor Block in South Sumatra to Caltex Pacific Indonesia?s Duri steamflood oil operation facilities in Riau province is progressing as planned and would be able to deliver additional gas in the third quarter of next year, according to PGN?s new boss.

?The compressors to boost the pipeline capacity will be installed in the next few months,? said WMP Simanjuntak on a sideline of post handing over ceremony in Jakarta.

The natural gas will be delivered through the existing 544-kilometer Grissik to Duri pipeline owned and operated PGN, the Indonesian state gas distribution and transmission company. PGN will install compression facilities to expand the capacity of the pipeline to meet the increased demand from CPI under this new contract

Under the terms of agreements, Corridor Block production sharing contract which is operated by Gulf Indonesia Resources will supply a contract quantity of 1.1 trillion cubic feet over a term of 19 years. Gas deliveries are expected to commence in mid 2002 at 120 million cubic feet per day (MMCFD) increasing to 180 MMCFD by mid 2003. Gas supplied under the new contract will supplement the gas that is currently being delivered from the Corridor Block PSC to the Duri Steamflood operations at rates of about 305 MMCFD declining to 245 MMCFD in 2003.(alex/godang)