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Jakarta Post

PGN award pipeline contract to Hutama Karya

Publicly listed state gas distributor PT Perusahaan Gas Negara (PGAS) has awarded the contract for the installation of a distribution pipeline in Medan, North Sumatra, to a business consortium consisting of state-owned Hutama Karya, Darma Empat Lima and Ilamaru Jaya

Rangga D. Fadillah (The Jakarta Post)
Jakarta
Fri, March 9, 2012

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PGN award pipeline contract to Hutama Karya

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ublicly listed state gas distributor PT Perusahaan Gas Negara (PGAS) has awarded the contract for the installation of a distribution pipeline in Medan, North Sumatra, to a business consortium consisting of state-owned Hutama Karya, Darma Empat Lima and Ilamaru Jaya.

The pipeline will deliver gas from the planned floating liquefied natural gas (LNG) terminal to be set up in Belawan. The pipes will be made by Krakatau Steel’s subsidiary, PT KHI Pipe Industries.

Under the contract, Hutama Karya and its partners will be tasked with design, construction, installation, pre-commissioning and commissioning. The consortium will install a 16-inch pipe which spans 11 kilometers, 12-inch pipe spanning 18 kilometers and an 8-inch pipe spanning 6.5 kilometers.

“The project also includes the installation of a supporting facility called a metering regulating station [gas flow control station],” the company’s spokeswoman Nella Andaryati told The Jakarta Post on Thursday.

“The appointment of the consortium is key to the development of our business and the manifestation of our commitment to meet the demand for gas in North Sumatra,” she continued.

PGN expects that the Belawan FSRU, which is projected to have a total capacity of 140 million standard cubic feet per day (mmscfd), can begin commercial operation in 2013, although the initial target was in 2012.

The project has been in limbo since state oil and gas firm PT Pertamina announced its plan to convert the Arun LNG plant into a receiving terminal, and to supply gas to Aceh and North Sumatra.

However, separately, State-Owned Enterprises Minister Dahlan Iskan reported that the Belawan FSRU and Arun LNG receiving terminals would be synchronized.

“Arun will deliver gas to Belawan through a pipeline which will be constructed by Pertamina from Arun to Pangkalan Brandan in North Sumatera. From Pangkalan Brandan to Belawan, the gas will be channeled through an existing pipeline,” he said as quoted by tempo.co.

Dahlan said that Pertamina aimed to complete the pipeline within 18 months. The pipeline will be buried under PT KAI’s railway track in Sumatra. “This way, permit issues will be easier to solve,” he said.

As for PGN’s Belawan FSRU, Dahlan said the LNG terminal would supply gas to South Sumatra and Lampung. The gas will then be used for state power company PT PLN’s gas-fired plants in Cilegon, Banten, and Muara Tawar in Bekasi.

PGN currently operates natural gas transmission and distribution pipelines spanning more than 5,900 kilometers. The firm distributes the gas to power plants, industries, commercial businesses and households across the country.

In the first nine months of 2011, the company recorded a net profit of Rp 4.51 trillion (US$495.33 million). At the same time, PGN distributed 785 billion British thermal units (Btu) per day of gas to customers, down from 821 billion Btu per day over the same period in 2010.

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