Monday, 17 June 2019 | 11:56 WIB

BPH Migas Set to Guard Acceleration of Development of Tanjung Api-Api Natural Gas Project

Illustration: Development of natural gas project.

JAKARTA, NNC - Downstream Oil and Gas Regulatory Agency (BPH Migas) directly led by Head of BPH Migas M Fanshurullah Asa together with BPH Migas Committee held Coordination Meeting with Governor of South Sumatra, Alex Noerdin and representative of Regional Energy and Mining Company (PDPDE) Syamsurizal at BPH Migas Building on Wednesday (3/6/2018).

On this occasion, PDPDE explained that the use of Gas Fuel (BBG) using pipes is much more efficient than High Speed Diesel (HSD) fuel, the use of Liquefied Natural Gas (LNG) usage and electricity distribution with submarine cables.

Met in the same occasion, South Sumatra Governor Alex Noerdin attended the Coordination Meeting with BPH Migas as materialization of South Sumatra Government's commitment in ensuring the proposal of Regional Enterprise of South Sumatera, that is, PDPDE in establishing the Natural Gas Pipeline of Tanjung Api-Api - Muntok.

Alex Noerdin appreciated the full support of BPH Migas for the acceleration of the Tanjung Api-Api - Muntok Natural Gas development project because in addition to increasing employment for the community it would also accelerate the development of the special economic zone of Tanjung Api-Api and Deep Sea Port as well as for the Province of Bangka Belitung.

BPH Migas fully supported PDPDE's proposal and is ready to guard acceleration of the development of Tanjung Api-Api - Muntok Natural Gas development project with the following notes:

1. PDPDE is expected to ensure demand side of Palembang - Tanjung Api-Api - Muntok fulfilled, so the return on investment is guaranteed.

2. PT Pertagas as a prospective shipper has submitted MoU with consumers;

3. To be confident that construction of Palembang - Tanjung Api-Api - Muntok gas pipeline can be realized;

4. There should be coordination with stakeholders to avoid overlapping in the use of fuel between gas through pipes, HSD and LNG.

5. Requesting the PDPDE to submit Front-End Engineering Design (FEED) for the Palembang - Tanjung Api-Api - Muntok section in April 2018 for the auction to be executed and the pipeline to be built soon.