PT Perusahaan Gas Negara (PGN) has started to distribute gas through its Duri-Dumai gas pipeline. The state-owned gas company built the pipeline as a joint project with state energy holding company Pertamina with a total investment of $76 million (€67).
In a press statement to The Jakarta Post, PGN corporate secretary Rachmat Hutama said that the initial gas distribution was to test the readiness of the infrastructure. And that by adding the 67 kilometre long pipeline, PGN will also distribute gas to Pertamina’s refinery unit in the area.
He continued, “Once the first distribution is considered safe, we will use the infrastructure to distribute gas to households, industries and other commercial clients in Dumai.”
The pipeline is going to be distributing gas that has been produced in two separate blocks. The first is the Corridor Block in South Sumatra that is operated by oil and gas company ConocoPhilips, which is based in the United States. The second is the Bentu Block operated by Bakrie group’s energy company Energi Mega Persada (EMP).
Hutama concluded, “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.”