JAKARTA (TheInsiderStories) - PT Pertamina Gas (Pertagas) joined with PT Rukun Raharja Tbk (IDX: RAJA), collaborating to construct Balam - Bangko - Dumai and the Minas - Duri - Dumai corridor at Rokan block. Both companies will investing US$300.62 million in the projects, with composition Pertagas 75 percent and Rukun Raharja 25 percent.
The two parties have signed a joint operation agreement on Oct. 21, 2020. Pertagas was appointed by PT Pertamina to carry out the construction and operation of the pipeline owned by the state energy holding and its parent, PT Perusahaan Gas Negara Tbk (IDX: PGAS), in 2019.
In 2017, Pertagas and Perusahaan Gas Negara have officially started the construction of the 64 kilometers of gas pipeline linking Duri and Dumai. The gas pipeline will deliver gas from Pertamina’ Dumai refinery to industry players, port and petrochemical complex in Riau province.
The pipeline developed from Duri Meter Station in Grissik - Duri to Dumari refinery plant and the gas supplied from Corridor Block, which is operated by ConocoPhillips, as well as Bentu Block, and Jambi Merang (JOB Pertamina-Talisman). The gas supply delivered to Dumai refinery and will convert gasoline into gas, and gradually increase the refinery’ production from 57 million standard cubic feet per day( MMSCFD) to 120 MMSCFD.
The total cost for the pipeline amounted to $52.2 million. Perusahaan Gas Negara collaborated with other state firm on the gas pipe project like Pertagas, PT Hutama Karya, and PT PDC - Elnusa. To achieve ideal national gas pipe construction, PGAS needs $21 billion.
While, the management Rukun Raharja said on Friday (03/19), the issuer is committed to disbursing $75.15 million in the oil pipeline projects. This material transaction need the shareholder approval caused the investment over than 60 percent of the energy producer’ total equity, which scheduled on April 27.
The oil pipeline has length 352.43 kilometers, consists of 12 segments and three stations, including supporting facilities. To support the business expansion, the oil and gas producer allocated capital expenditure $100 million in this year.
Beside for the pipeline projects, said president director of the company, Djauhar Maulidi, the funds would be used to acquires a company engaged in clean water businesses, PT Bravo Delta Persada. The new unit claimed to have a water capacity up to 100 liters per second and the transaction entered the finalization stage.
In the gas sector, Rukun Raharja is trying to complete the acquisition of PT Heksa Energy Mitraniaga, a liquid petroleum gas company located in Rembang, Central Java, with a capacity up to 2,000 tones per day. The construction is targeted for completion in the third quarter of 2021.
“In addition, we plan to participate in gas trading projects and pipeline projects in Central Java and work on pipeline gas trading projects in Jambi,” he explained in virtual public expose today.
Rukun Raharja also intend to develop CNG gas in several regions in Indonesia, especially Java and Sumatra, with a potential volume around 1 - 3 million standard cubic feet per day (MMSCFD). The company assesses that gas demand in Asia Pacific, especially China, will recover in this year after hit by the pandemic.
While, for the European, Eurasian and North American markets, the demand growth was triggered by the industrial and power sectors. Recently, said Maulidi, the company has obtained new customers and the contract will start in 2021. The issuer also received 10 MMSCFD of gas allocation from PSC in Sumatra.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
