Gas Transmission

Gas Transmission Open Access Between Pertamina Gas with PGN Indonesia

Gas Transmission

PT Pertamina Gas, a subsidiary of PT Pertamina (Persero), an integrated energy company belongs to the state, listed as a facility provider gas pipeline for open access (open access), the largest in a number of areas in the country compared to PT Perusahaan Gas Negara (PGN) Tbk (PGN), gas transmission and distribution companies nationwide are 56% owned by the Indonesian government. Pertamina Gas pipeline carrying gas to provide facilities for open access by 95% while PGN only 35%, according to documents obtained by the World Energy.

Gas pipeline open access policy is set in the Minister of Energy

and Mineral Resources No. 19 of 2009, stated that in conducting business trade of natural gas through pipelines, the corporation is obliged to wear transmission and distribution pipelines are available to be used together (open access) on transmission segment and region specific distribution network. Based on the ESDM, Director General of Oil and Gas Ministry of Energy and Mineral Resources issued a warrant in 2011 for all gas pipelines should be open access.

In North Sumatra, the entire pipe Pertamina Gas allocated for open access. The gas pipeline spread in Lhokseumawe and Arun in Nanggroe Aceh Darussalam to Belawan and Langkat in North Sumatra with a pipe length of nearly 500 kilometers. Pertamina Gas transmission pipeline master, especially for pipeline Arun-Belawan.

In the same area, PGN only provide open access to regional allocation of Medan, Binjai and Deli Serdang. As for the gas distribution pipeline in the area of Medan, entirely controlled (dedicated) company. Total PGN pipeline owned in the region about 620 kilometers-an.

In the region of southern-central Sumatra, nearly 500 kilometer pipeline Pertamina Gas allocated entirely (100%) for open access. These pipes spread from Muara Enim, Prabumulih, Ogan Ilir, and Palembang. The PGN has the largest pipeline, which is about 2,200 kilometers-an. However, only four pipeline open access, namely Sout Sumatra-West Java pipeline (SSWJ) I and SSWJ 2 and TGI Grisik-Duri and TGI Grisik-Singapore. Two other pipelines, namely the distribution pipes and distribution Pekanbaru Batam and Riau Islands is not open access alias dedicated to the company.

In the western part of Java, Pertamina Gas has 529 kilometers long of pipelines. The Company controlled transmission pipelines and regasification infrastructures. Seven pipelines are open access, namely Tangerang, Bekasi, Bogor, Karawang, Indramayu, Subang, and Mundu Cirebon. Only one gas distribution lines, which are dedicated to company at Bekasi. Meanwhile, PGN, for the same region, 100% dedicated company, and not open access, ie the region Jabar distribution along 2,220 kilometers.

In the region of Central Java and East Java, Pertamina Gas also provide an opportunity open access. This is evident from an 430-kilometer segment of pipe that is owned by this company, two segments, namely Sumenep-Sidoarjo and Surabaya-Gresik open access. Only Sidoarjo dedicated distribution to companies. In this region, Pertamina Gas has the power transmission pipeline network through Semarang-Gresik and have an allocation of large amounts of gas.

In this region, the most severe PGN from the side of open access gas pipelines. A total of 100% and a dedicated to pipeline companies that did not provide open access. In fact, the length of the gas pipeline company in this segment reached 697 kilometers, covering the distribution pipes of Surabaya-Gresik, Sidoarjo-Mojokerto distribution pipes, and pipe distribution Pasuruan-Probolinggo.

Press Gas Prices

The selling price of gas to consumers especially industrial gas consumers can be reduced if a business entity that runs the business of gas transmission and distribution can reduce production costs, distribution costs as well as reduce the cost of investment, coupled with the implementation of open access policies optimally and not half-hearted. Hisham Ibrahim, commissioners Downstream Regulatory Agency for Oil and Gas (BPH Migas), said that gas prices in Indonesia consists of costs of production and distribution. Cost of production varies, the greater the production is getting cheaper.

"In other countries carried their gas production on several giant lading. In Indonesia, the field split and to a large field would lower production costs. Remember how gas from Tangguh (Papua) to Fujian ?", he said.

According to Ibrahim, Indonesia is different from other countries because of the shape and location of the island nation of consumption area away from the production site. This causes no distribution costs vary. For example, the gas to be supplied from Papua to Medan. The gas must be liquefied natural gas (LNG), is filled into the vessel, transported and arrived in Arun, dismantled gasified back, pipe pumped to Medan and there be price of US $ 14 per million British thermal unit (MMBTU).

"For Jakarta, because there are no such made FSRU facilities like in Arun. Their distribution facilities caused additional costs compared with other countries that are not islands, stayed title pipes for conveyance which is certainly cheaper. The solution of course, the cost of production must be suppressed, reduced distribution costs to reduce the investment cost and must able to  open access and trader terraced crop", he said.

Ibrahim said that the implementation of open access PGN always maintained that the initial designs are made are not open access so that the necessary additional costs for the change. Therefore there needs to be an independent surveyor to determine the initial design of the pipe can not for open access or no pipes that could open access.

"There is another problem as well is that many middle and lower industry do not understand well the switch to gas. Belawan Arun new pipe-half capacity utilization, will also pipe Porong-RoW will be a lot of excess. Because it should be encouraged to industries along the pipeline. So, follow the energy industry is not like now is following the energy industry", he said.

Rinaldi Dalimi, member of the National Energy Board, said PGN should run what has been set by the government. On the other hand, the government should also ask PGN implement it.

"There's no reason they would not be regulated by the government. Not just for PGN, as well as to other business entities. Application of open access is not profitable for PGN, but profitable nationwide", he said. (source from http://www.dunia-energi.com/pipa-open-access-pertamina-gas-lebih-besar-dibandingkan-pgn/).

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