google.com, pub-9591068673925608, DIRECT, f08c47fec0942fa0 Feasibility Study for Dumai Sei Mangkei Pipeline Review - MEDIA MONITORING OIL AND GAS -->

Feasibility Study for Dumai Sei Mangkei Pipeline Review

 


The government will complete the connection of the gas pipeline network that will connect Sumatra and Java, one of which is the Sei Mangkei-Dumai Pipe. However, the feasibility study / FS of this project needs to be readjusted to the current situation because it has been prepared since 2014.

Director of Planning and Development of Oil and Gas Infrastructure at the Ministry of Energy and Mineral Resources (ESDM) Alimuddin Baso explained, based on the FS, the pipe was designed to be between 12-28 inches in diameter and the investment cost was estimated at the US $ 483 million. 

    The study has not yet determined the funding scheme that will be used. However, there are two alternatives, namely using state funds such as state investment (PMN), or Public-Private Partnership (PPP).

"PT PGN Tbk has made a feasibility study since 2014 and with the development of these 6 years, it needs to be reviewed again. That must be the main consideration, "he said.

His party is worried that if there is no review, many points that will be connected will be neglected. He explained that the Sei Mangkei-Dumai Pipe was needed to maintain the reliability of the gas supply in North Sumatera and Riau. Currently, the gas supply in the area comes from Grissik and Jambi through the Grissik-Duri-Dumai Pipeline, as well as the Arun LNG Terminal, Block A, NSO / NSB Block via the Arun-Belawan-Sei Mangkei Pipeline.

"In addition, it also encourages the growth of new industrial estates along the Sei Mangkei-Dumai gas pipeline," added Ali.

Referring to the National Gas Balance, Aceh and Northern Sumatra regions obtain gas from Block A, NSO, and NSB, as well as Tangguh LNG. In addition, several projects will begin production, namely Lhokseumawe Block and Gebang Block in 2023, and ENI Jau in 2024. 

    Meanwhile, the main consumers of gas are PT Pupuk Iskandar Muda (PIM) and electricity. Unfortunately, until now there is no certainty regarding gas demand for the retail industry along with the Sei Mangkei-Dumai Pipe.

"This is an empirical condition and must be observed so that when deciding which scheme to use, it must be prudent. We want something that is decided on that will be executable, not planned. So it is important to discuss it carefully, "said Ali.

However, this pipe can also be used to supply gas to other areas such as Labuhan Baru, Asahan, and Medan, as well as power plants in North Sumatra. The Sei Mangkei-Dumai pipeline is one of three gas transmission pipeline projects proposed by the Ministry of Energy and Mineral Resources which was approved as a National Strategic Project (PSN) which will be revised after the Covid-19 pandemic has passed. 

    The other two transmission pipeline projects are the Cirebon-Semarang Pipe and the West Natuna Transportation System (WNTS)-Pemping Island Pipeline. 

Investor Daily, Page-10, Tuesday, Nov 17, 2020

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