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SKK Migas approves gas allocation to Arun-Belawan transmission pipeline

JAKARTA (Rambu Energy) – The Indonesian Special Task Force for Upstream Oil and Gas business (SKK Migas) has approved the allocation of gas to the Arun-Belawan gas transmission pipeline following the completion of the pipeline project.

Deputy Head of SKK Migas Johanes Widjonarko said the gas will be transported from North Sumatera Offshore (NSO) field owned by ExxonMobil to the Arun LNG plant, operated by a Pertamina subsidiary, reported.

Gas from the NSO field will be first regasified at the Arun LNG terminal before delivered to Belawan gas power plant (PLTGU) owned by the state electricity company PT PLN, via the 350-kilometers gas transmission pipeline.

The pipeline was designed to have a capacity to transport 300 million standard cubic feet of gas per day (MMSCFD) with a total investment of US$586.04 million. Initially, 50 MMSCFD gas will be transported from NSO field to the Arun LNG plant.

President Director PT Pertamina Gas (Pertagas) Hendra Jaya welcomes the SKK Migas decision. He hopes that the flow of gas to Aceh through the pipeline will meet growing demand for gas by industries and electricity sectors in Aceh. He said the Arun-Belawan gas pipeline will commence commissioning on Dec. 10, 2014.

The Arun LNG Storage and Regasification Terminal is developed and managed by PT Perta Arun Gas, a subsidiary of Pertamina. The regasification terminal was originally owned by ExxonMobil. Pertamina then bought the facility and modified it to become an LNG Storage and Regasification Terminal. (*)

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