PLN Batam, PT UBE set up consortium to build gas pipeline
Wednesday, April 18 2012 - 04:16 PM WIB
PT PLN Batam President Director Dadan Koernadipoera and PT UBE President Director Arie Wibisono signed the consortium agreement in a ceremony that was also attended by PT PLN Director for western Indonesian operation Mohammad Harry Jaya Pahlawan at PLN headquarters in Jakarta on Wednesday.
The gas pipeline from Pemping island to Batam island will have a diameter of 16 inch at a length of 15 kilometer and with transportation capacity of 55 BBTUD. The facility will funnel gas from west Natuna to Batam island, where the gas will be used for electricity generation by PT PLN Batam and PT UBE, which both have a generation capacity of 200 Megawatt there. The pipeline will be in operaton on the 4th quarter of 2013.
Both PT PLN Batam and PT UBE have separately signed gas sales agreements with Premier Oil West Natuna B.V, Natuna 1 B.V., Natuna 2 B.V., and with KUFPEC Indonesia (Natuna) B.V. on 15th April 2008 with each having a volume of 20 bbtud for 20 years.
Based on the GSA, both PLN Batam and PT UBE were required to build the gas pipeline from their agreed delivery point in Pemping island to the power plants owned by PLN Batam and UBE in Batam island.
The gas pipeline is expected to strengthen the security of gas supply in Batam, which so far only relies on gas supply from Grissik, south Sumatra. The infrastructure is also expected to encourage new investments, which in turn will generate the growth of local economy and the national economy.
Editing by Benget Besalicto Tnb.