The US$300 million project, which will connect 493 km of pipelines, may now be completed in July 2007 instead of December 2007.
In a statement PGN said, “Under the agreements, PGN will buy up to 120 million cubic feet of natural gas a day from Kondur’s plant in Duri and sell around 100 million cubic feet to Asahan Power. The pipelines [will] only transfer 80 million cubic feet of natural gas per day starting 2007 and would be gradually increased to 120 million cubic feet over 20 years.”
“The initial agreement to purchase gas from Kondur Petroleum SA will eventually see the 120 million cubic feet a day be delivered via a pipeline from Kondur’s plant in Indonesia’s Riau province to Medan in North Sumatra province. Asahan Power will use the gas to supply its 600-megawatt power plant in North Sumatra,” it added.
