PGN seeks gas allocation from JTB project
Monday, September 25 2017 - 09:06 AM WIB
Petromindo|Boim
State-controlled gas distribution firm PT PGN Tbk is seeking for gas allocation from the Jambaran Tiung Biru (JTB) gas development project in Bojonegoro, East Java Province, when it starts production in 2021.
PGN said it has the capacity to absorb between 30-60 bttud of the JTB gas.
?PGN?s infrastructure is ready. We have transmission and distribution pipelines in East Java. We?re ready to absorb 30 bbtud and then ramp up to 50-60 bbtud. We?re asking the government for the gas allocation. We?ll also discuss this with Pertamina,? PGN President Director Jobbie Triananda told Petromindo.com on Monday on the sidelines of a ground-breaking ceremony of JTB project gas processing facility.
He said that as an arm of the government, PGN is ready to distribute gas to industry and household consumers.
Minister of Energy and Mineral Resources Ignasius Jonan confirmed the request made by PGN. He said the company is welcome to distribute the JTB gas as long as there is allocation and buys the gas at competitive price.
The JTB project, operated by PT Pertamina EP Cepu, a unit of state-owned oil and gas firm PT Pertamina, will allocat 100 mmscfd of gas to Pertamina, which will later distribute it for power plant in Gresik, East Java, owned by state-owned electricity firm PT PLN. Another 72 mmscfd will be distributed to industries in Central and East Java.
The gas will be distributed via the 267-km Gresik-Semarang pipeline, to be developed by Pertamina Gas.
Pertamina EP Cepu is the operator of the JTB project with interest of 45 percent, while the remaining 20.5 percent is held by Mobil Cepu Ltd, 24.5 percent by Ampolex Cepu, and 10 percent by companies owned by local administrations.
Editing by Reiner Simanjuntak