PGN to Complete Natuna Gas Pipeline this Year

Perusahaan Gas Negara (PGN) has said it will complete the construction of the natural gas pipeline from the West Natuna Transport System to Pemping Island, Riau Islands Province, this year. Development of this pipeline was assigned by the Ministry of Energy and Mineral Resources.

PGN Director Suyon said that the funds were available to build the gas pipeline from the West Nutuna Transport System. The funds include loans and company money.

He was also optimistic that the pipeline project would be completed on target. “It could be finished this year; it’s not a very long pipe,” he said in the Indonesia Stock Exchange Building, Monday (1/8).

(Read: Government Assigns PGN to Build Natuna Gas Pipeline to Batam)

According to Decree of the Minister of Energy and Mineral Resources No. 6105K/12/MEM/2015, PGN would use its own funds for this project, and the Regulatory Agency would grant special rights and set the toll fee.

The ministry’s Director General of Oil and Gas I.G.N. Wiratmaja Puja previously said that development of this gas pipeline was one initiative to accelerate development of oil and gas blocks in Natuna. There is currently no pipeline that can distribute gas from this area. The only production facility and pipeline is in west Natuna, to distribute gas to Singapore.

For this assignment PGN has to coordinate with Perusahaan Listrik Negara (PLN) to develop the front end engineering design. Facilitated by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), PGN also has to coordinate the construction of the pipeline with the West Natuna Transportation System operator.

(Read: Drilling to Start Next Year in Two Oil and Gas Blocks in Natuna)

PGN’s second obligation is to complete the development of the natural gas pipeline from the West Natuna Transportation System to Pemping Island, and its supporting infrastructure. The company also has to operate the pipeline and its supporting infrastructure sustainably.

The company has to apply to the minister for a business permit for the transportation of natural gas, and arrange all the necessary permits to undertake this assignment. Another obligation is to submit periodical written progress reports to the Energy Minister via the Director General of Oil and Gas.

PGN is also required to take emergency measures, and report on and assume responsibility in the event of a general failure or natural disaster. On the basis of these reports, the Director General of Oil and Gas will arrange the necessary responses. In carrying out this assignment, PGN must also comply with current statutory provisions.