PHE ONWJ, Nusantara Regas sign facility sharing agreement
Thursday, August 29 2013 - 03:47 AM WIB
PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), a subsidiary of PT Pertamia Hulu Energi (PHE), today signed a facility sharing agreement with PT Nusantara Regas, operator of the West Java floating storage and regasification (FSRU) unit.
Under the agreement, Nusantara Regas, which is jointly owned by state-controlled gas distribution firm PGN and state-owned oil and gas firm Pertamina, will use the excess capacity of pipeline operated by PHE ONWJ to distribute gas from the West Java FSRU to the Tanjung Priok power plant owned by state electricity firm PLN.
The agreement was signed by PHE President Director Ignatius Tenny Wibowo and Nusantara Regas President Director Hendra Jaya, witnessed among others by Acting Chairman of the upstream oil and gas authority SKK Migas, J. Widjonarko.
Widjonarko said that the agreement would result in efficiencies both in the upstream and downstream sector. For PHE ONWJ, allowing Nusantara to use the facility will lower the operation and maintenance cost shouldered by the company, thus resulting in lower cost recovery, as Nusantara will bear part of the cost. Based on historical data, assuming that Nusantara distributes 165 mmbtu of gas for three years, the cost recovery saving potential at PHE ONWJ is estimated at US$13.9 million.
In the downstream sector, the gas distributed to PLN would also result in cost saving as it would allow the power utility to cut down the use of costlier diesel fuel, with estimated cost saving potential of $798.3 million to be gained by PLN.
Editing by Reiner Simanjuntak