PHE to distribute gas to Belawan

PT Pertamina Hulu Energi (PHE), a subsidiary of state-owned oil and gas firm PT Pertamina, plans to start next year distributing gas produced from newly acquired North Sumatra Offshore (NSO) and Block B in Aceh to Belawan in neighboring North Sumatra, Bisnis Indonesia reported on Thursday.

The paper quoted PHE President Director Gunung Sardjono as saying that his company is currently reviewing the production potential of the two blocks to determine the gas volume to be distributed to Belawan. ?If possible, 20-30 mmscfd to be distributed to Belawan,? he said.

Gunung added that the gas will be distributed via the Arun-Belawan pipeline operated by PT Pertamina Gas, another subsidiary of Pertamina.

Pertamina acquired earlier this month the two blocks from ExxonMobil Indonesia, and handed them over to PHE.

Production rate of the two blocks currently stand at around 110 mmscfd, of which 60 mmscfd distributed for fertilizer firm PT Pupuk Iskandar Muda, and the remainder for utilities. Production rate for next year is expected to remain the same. (*)