Toll fee for PGN's SSWJ II pipeline fixed at $1.47

The government has fixed the toll fee for the delivery of gas through PT Perusahaan Gas Negara (PGN)'s  South Sumatra-West Java (SSWJ) II gas pipeline at US$1.47 per mile standard cubic feet (MSCF), the highest so far in the country.

 

The toll fee for the SSWJ II which distributes gas from Grissik in South Sumatra to Muara Bekasi, West Java was decided on Monday by downstream oil and gas regulatory body BPH Migas after considering the requests from both PGN as the supplier and PLN as the main buyer.

 

Earlier, PGN has reached an agreement with PLN on the price of gas supplies for the latter’s power plant in Muara Tawar, West Java .

 

Under the agreement, PLN will pay US$4.5 per million British thermal unit (MMBTU) for gas supplies pipelined by PGN from American firm ConocoPhillips’ Suban gas field of the Corridor block in South Sumatra. PGN acts as a buyer of the gas and resells it to PLN.

 

Tubagus Haryono, the head of BPH Migas said that the agency had finally decided to take the middle rate of the toll fee rates offered by both PGN and PLN as the official toll fee for the gas distribution through the SSWJ II.

 

"PGN had initially offered a toll fee of $1.7 per MSCF while PLN requested a rate of $0.95 per MSCF," he said. BPH Migas had previously offered a range of between $1.2 and $1.24 for the SSWJ II but PGN requested a higher rate due to an increase in the construction costs for the project.

 

The highest toll fee so far is $0.84 imposed on the East Kalimantan-Central Java pipeline project which will be built by PT Bakrie and Brothers. (godang)