PLN Batam to build gas terminal and pipeline

State owned electricity firm PT Perusahaan Listrik Negara (PLN) Batam has named a consortium of PT Batam Trans Gasindo which includes PT Hafardaya Konstruksi, PT Prosys Bangun Persada, dan PT KPM Oil and Gas to build an onshore gas receiving terminal and its gas pipeline in Batam.

Batam Trans Gasindo would build a gas pipeline to distribute gas from Gajah Baru gas field operated by Premier Oil Natuna Sea BV and an onshore gas terminal which will store gas before being distributed to gas-fired power plants operated by PLN Batam and PT Universal Batam Energy (UBE).

Under that agreements signed in Jakarta on Friday, Batam Trans Gasindo would build the gas infrastructure facilities under a build, operate and transfer (BOT) contract, the president director of PLN Batam, Dadan Kurniadiputra said.

Under the contract, PLN will install the payments of the contract worth about US$49.8 million for 10 years. When the installment is completed, the ownership and operation of the gas facilities will be transferred to PLN, he added.

The power plant owned by UBE and PLTGU Tanjung Uncang power plant owned by PLN Batam will respective receive gas supply of about 20 million standard cubic feet per day (mmscfd) for five years. After the five-year period, PLN Batam will receive 35 mmscfd and UBE 15 mmscfd. (*)