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Problems on Indonesia-Singapore pipeline delays first gas

Technical problems have delayed gas shipments via the new 477km Indonesia to Singapore gas pipeli...

Problems on Indonesia-Singapore pipeline delays first gas

Tong PT Perusahaan Gas Negara (PGN) said gas will now be delayed until August 24.

Initial shipments were due on August 12th but were put back as PGN seeks to insure the extended viability of the pipeline after a two and a half year construction process.

The pipeline transmits natural gas from Grissik natural gas field in South Sumatra to Sakra Island via Sakernan in Jambi and Batam Island.

Under a 20-year contract, the pipeline will transmit 150mmcfd of gas from fields operated by ConocoPhillips and PetroChina in Sumatra to Singapore buyers. Gradually, the supply will be increased to 350mmcfd.

The gas transmission pipeline is also part of huge project the Trans-ASEAN Gas Pipeline Project which plans to connect the region with a giant gas pipeline.

As the regions only supplier of natural gas Indonesia is seeking to take advantage of the growth in demand for gas power with the pipeline due to be extended to Malaysia's West Coast in the near future.

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