TGI seeks to double gas toll fee

PT Transportasi Gas Indonesia (TGI), which is controlled by state owned gas distributor PT Perusahaan Gas Negara (PGN), is seeking to double the toll fee payable by gas producers using its pipeline network to transport their gas.

TGI has proposed that the toll fee be increased to US$1.3 per mscf from 69 US cents at present, Tubagus Haryono, the head of oil and gas downstream regulator BPH Migas, said on Friday.

Tubagus said BPH Migas had held a meeting for TGI to discuss with its clients ConocoPhillips, PetroChina Jabung and PGN on the proposal.

TGI argued that it should increase the toll fee because it would spend an additional $135 million to add compressors at its Jabung station and repair buckles.

?The shippers apparently considered the increase too much. We gave the shippers two weeks from two days ago to make their minds about the TGI proposal," Tubagus said.

He said BPH Migas also considered the increase proposed by TGI too much and would cause more burdens to end users.

?We want to protect end users such as the customers in Batam of PLN (state owned electricity firm PT Perusahaan Listrik Negara) that uses the gas,? he said.

TGI is an international joint venture owned 59.87 by PGN, 40 percent by Transasia Pipeline Company Pvt. Ltd and 0.13 percent by PGN?s employee fund Yayasan Kesejahteraan Pegawai PGN.

It operates 1,006 km of onshore and offshore gas pipelines from Grissik to Duri and Grissik to Singapore via Batam. (Bernard)