JAKARTA (TheInsiderStories) – PT Pertamina and EMP Bentu Limited, a subsidiary of PT Energi Mega Persada Tbk (IDX: ENRG) signed a gas sales and purchase agreement with a volume of 0.2Million Cubic Gas Gas Per Day (MMSCFD) for gas network allocation in Pekanbaru City, Riau Province.
Corporate Communications Vice President Adiatma Sardjito explained, that the gas allocation will be used to serve the needs of 3,713 Jargas household connections in Pekanbaru City. The gas network infrastructure in Pekanbaru was built by Pertamina using the State Budget of 2015 funds and started the gas flow since Oct. 21, 2016.
Pertamina, He continued, is preparing the construction of additional gas network for 3,270 household connections in Pekanbaru. These additional connections use the APBN budget of 2017. Pertamina projected to build gas network infrastructure about 130,954 SR in 19 districts and cities until 2019. This year, the gas network connection will reach about 95,923 SR in 10 districts and cities.
Meanwhile, its unit PT Pertamina EP, engaged in upstream oil and gas sector and is a Contractor of Cooperation Contract under SKKMigas, optimizes production facilities at the Elephant Development Project to support Indonesia’s energy security. The Elephant Development Project located in the Muara Enim and Ogan Komering Ulu Regencies, South Sumatra Province is a gas development project that will meet the needs of the gas market in South Sumatra and surrounding areas.
“The Elephant Development Project will be equipped with 2 stations of the Paku Gajah Gas Collecting Station (SPG) with a gas production capacity of 45 MMSCFD and SPG Kuang with Production Capacity of 25 Million MMSCFD As well as a 12 “trunkline pipeline along the 23 km of SPG Paku Gajah to existing CO2 removal of SPG Merbau”, said Tri Widyo Kunto General Manager of the Elephant Development Project.
Furthermore, he explained, Gas generated from SPG Paku Gajah and SPG Kuang will be channeled to PGN consumers and other consumers in South Sumatra. The Paku Gajah Development Project has a complete Production Facility ranging from producing natural gas from Exploration wells as well as from Development wells.
Several exploration well drilling has been carried out since 2010 through Put On Production (POP) stage and in 2013 followed by drilling of Development through SKKMigas approved Plan Of Development (POD) stages in June 2013.
“POD Integration phase-1 Elephant Paku and phase-2 Kuang Selatan has done some activities that is drilling 10 Development wells, 17 Work Over wells completed until the end of 2016. The construction of 2 SPG: Elephant and Kuang Paku and construction of trunkline pipeline 12 “As long as 23 km from SPG Paku Gajah to SPG Merbau has been completed and is currently entering the Start Up – Commissioning phase which begins at the end of March 2017”, said Kunto.
To meet the needs of a sizable gas market in South Sumatra and to extend the period of plateau production, the Paku Gajah Development Project plans to develop integrated Oil and Gas Fields around the Paku Gajah area by drilling the next Exploration and Development and put into the POD phase- 2 and phase-3.
PT Pertamina EP is committed to contribute optimally to the State and Local Government with oil and gas potential, we hope that with the full support of all stakeholders, our operations in searching and producing oil and gas can work smoothly and energy needs in Indonesia can be fulfilled.