Pertagas in talks with Kangean, Husky to secure long-term gas supply contract

JAKARTA (Rambu Energy) – PT Pertamina Gas (Pertagas), a subsidiary of state owned oil and gas company PT Pertamina, said it is talks with Kangean Energy Indonesia Ltd and Husky to secure a long-term gas supply contract of 50 million standard cubic feet per day (MMSCFD).

Hendra Jaya, president director of Pertagas, was quoted by Bisnis Indonesia as saying that the gas from those two sources will be transmitted through its 267-km Gresik-Semarang transmission gas pipeline which has been inaugurated by the government on Wednesday.

He expects the gas supply delivery will start in 2016 once the gas pipeline project is completed.

Hendra Jaya said the gas pipeline project cost was initially estimated to reach US$415.7 million, however, since it uses land owned by PT Kereta Api Indonesia (KAI), Pertagas managed to cut the project cost.

Pertagas also expects to get additional 100 MMSCFD of gas from Tiung Biru field, Cepu Block and 110 MMSCFD from Alas Tua Field (Cepu Block) in 2022. (*)

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Photo credit : PGN

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