State-owned gas company PGN plans to develop gas transmission and distribution pipelines worth US$140 million in Dumai, Riau, to meet growing demand for gas in the region.
The gas distribution networks will span 56 kilometers and connect to different customers, including households, commercial businesses and various industries.
Meanwhile for the transmission pipeline, PGN will work with state-owned energy company Pertamina. The Duri-Dumai transmission pipeline will span 67 kilometers and transport about 140 million metric standard cubic feet of gas per day (mmscfd).
“The gas distribution pipeline will be completed in conjunction with the transmission pipeline by the end of 2018,” PGN president director Jobi Triananda Hasjim said on Tuesday in Jakarta.
The two firms signed a heads of agreement (HoA) document on June 9 over constructing and operating the transmission pipeline.
PGN said it had secured gas supplies for the two pipelines, including 37 billion British thermal units per day (bbtud) from ConocoPhillips’ Corridor field in South Sumatra for the period of 2018 to 2030.
The company would also get an additional supply of 2 bbtud from the Jambi Merang field, which is currently managed by a joint operating body of Pertamina subsidiary Pertamina Hulu Energi, Canada’s Talisman Energy and Singapore’s Pacific Oil and Gas Ltd.
In addition to the Dumai projects, PGN is also developing a 6-kilometer gas transmission pipeline connecting the West Natuna Transmission System (WNTS) with Pemping Island, Riau. It will also develop a 42-kilometer gas network connecting Muara Karang in Jakarta and Muara Bekasi in West Java.