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T Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas firm PT Pertamina,has set a two-digit growth target for next year following the completion of several of its expansion projects.

Pertagas president director Hendra Jaya said on Friday that the company had sought business growth of around 15 percent next year.

'€œIt will be supported by projects that will be on stream [next year], such as an LPG Plant [in Jambi]. If the Muara Karang-Tegal Gede pipeline [in West Java] project is approved to immediately start construction, it will be able to supply gas to industries and PLN [state-owned electricity PT PLN],'€ Hendra said.

He added that the company would have additional gas supplying capacity of up to 400 million standard cubic feet per day (mmscfd) from new projects to be on stream next year.

Pertagas is currently engaged in expansion projects to boost its gas delivery capacity. The projects include the development of the 370-kilometer Arun-Belawan pipeline in Aceh with an investment of US$400 million that will have the capacity to deliver 200 mmscfd.

Beside pipelines, Pertagas is also modifying the Arun LNG plant into a regasification terminal with a capacity of 200 mmscfd. This project will cost about $80 million.

Another significant project will be the development of the Muara Karang-Muara Tawar-Tegal Gede pipeline in West Java, which will measure 70 kilometers in length and is estimated to cost $155 million. The pipeline will have a capacity of 270 mmscfd and will supply gas to the industrial area around West Java, Jakarta and Banten.

The company is also working on the 45-kilometer Grati pipeline project in East Java with $87 million in investment as well as the 16-kilometer Wunut-Ngoro pipeline project worth $9 million. The Grati pipeline will supply gas to PLN in the area while Wunut-Ngoro will supply the industrial area.

As other project goes on, the development of the Gresik-Semarang pipeline project worth $516 million is likely see further delays as the company has yet to secure gas supply for distribution, according to Hendra.

The Gresik-Semarang pipeline measures 271 kilometers in length and will have a capacity of 500 mmscfd.

Separately on Friday, Pertagas'€™ 99 percent-owned subsidiary PT Pertagas Niaga signed an agreement on the distribution of gas with state-owned plantation company PT Perkebunan Nusantara III, which operates the Sei Mangkei special economic zone located in Simalungun regency, North Sumatra.

Under the agreement, Pertagas Niaga will supply 75 mmscfd of gas from the Arun regasification plant. As much as 40 mmscfd of the total capacity will be used for industry needs in the economic zone. Some of companies to be based in Sei Mangke are Samator Group, Procter and Gamble (P&G) and Unilever Oleochemical. Meanwhile, the remaining 35 mmscfd will be delivered for gas needed to fuel independent power producers in the economic zone.