PLN to start receiving gas from Jambi Merang next week

Upstream oil and gas regulator BPMIGAS said gas from Jambi Merang, operated by Joint Operating Body (JOB) Pertamina Hulu Energi and Talisman, will start flowing to the state electricity company PT PLN this month.

Rudi Rubiandini, Deputy Chairman for Operation of BPMIGAS said the volume of gas will gradually increase from 20 BBTUD initially to 40 BBTUD in the following month and to 65 BBTUD starting from December 2011. The gas from Jambi Merang will be delivered to PLN Batam branch via pipeline owned by PT Perusahaan Gas Negara.

PLN?s division head for fuel and gas procurement, Suryadi Mardjoeki, said PLN has asked BPMIGAS to ensure that gas from Jambi Merang will be delivered starting from November 15. The delivery of gas is made possible after PLN, PGN and BPMIGAS signed an agreement on gas delivery on November 4.

The delivery of gas from Jambi Merang field has been delayed partly due to disagreement on toll fee to be paid to PGN. Suryadi said PLN has met all the demands of PGN, the owner of the pipeline, which will be utilized to flow the gas. PLN pays $0.5 cent per bbtud to PGN.

Rudi Rubiandini said gas from Jambi Merang will be delivered ahead of gas from Gajah Baru field in Natuna, operated by Premier Oil BV. The gas from Gajah Baru field will be supplied to PLN under a swap deal with ConocoPhillips? Corridor Block. Gas from ConocoPhillips? Corridor Block, with a volume of 40 million cubic feet per day, which is supposed to be sent to Singapore buyers, will be redirected to PLTG Muara Tawar, owned by PLN. (*)