SKK Migas helps to speed up Jambi Merang LPG plant project

Upstream authority SKK Migas will help speed up the development of Jambi Merang LPG plant in South Sumatra owned by state owned PT Pertagas, a subsidiary of oil and gas firm PT Pertamina by enabling it to use the Right of Way (RoW) of several upstream companies.

Pertagas plans to use the RoW?s of PetroChina Jabung and JOB Pertamina-Talisman Jambi Merang (JOB P-TJM) to build Natural Gas Liquids (NGL) pipeline and the LPG Plant.

SKK Migas?s Business Support Control Deputy Lambok Hamonangan Hutauruk said in a statement that he will facilitate coordination between Pertagas and both contractors as well as related divisions at SKK Migas so that Pertagas may use the RoW?s. Also, SKK Migas will coordinate with the Directorate General of State Treasures at the Ministry of Finance for the purpose.

Under the existing regulation, RoW?s of upstream companies are considered to be property of state. As such, anyone wants to use it needs an approval from the Ministry of Finance.

Lambok made the statement recently during a visit to Jambi Merang block.

The LPG plant which is scheduled to be completed in 2016 will process gas from the Jambi Merang field into LPG to meet the rising needs of the fuel in the domestic market.

Editing by Johannes Simbolon