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Duri-Dumai gas pipeline begins operation
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A building owned by state-owned gas company PGN. (Courtesy of/State-owned gas subholding company PGN )
S
tate-owned gas company PT Perusahaan Gas Negara (PGN) started on Saturday gas distribution through its Duri-Dumai gas pipeline, built as a joint project with state energy holding company Pertamina with a total investment of US$76 million.
PGN corporate secretary Rachmat Hutama said in a press statement received by The Jakarta Post on Saturday that the initial gas distribution was to test the infrastructure's readiness.
"Once the first distribution is considered safe, we will use the infrastructure to distribute gas to households, industries and other commercial clients in Dumai," he said adding that the pipeline would also distribute gas to Pertamina’s refinery unit in the area.
The pipeline will distribute gas produced in two blocks – the Corridor Block in South Sumatra, which is currently operated by United States-based oil and gas company ConocoPhilips, and the Bentu Block that is operated by Bakrie group's energy company Energi Mega Persada (EMP).
"When the Duri-Dumai gas pipeline is fully operational, we will be able to distribute around 200 million metric standard cubic feet per day (mmscfd) of gas." he said adding the pipeline was 67 kilometers long.
PGN director of infrastructure and technology Dilo Seno Widagdo said previously that the pipeline could supply gas to at least 200 families. (bbn)
