Indonesia government commit to accelerate the construction of natural gas distribution network infrastructure (jargas) for 293,533 household connections (SR) in 54 districts / cities throughout 2020

Indonesia government has a commitment to accelerate the construction of natural gas distribution network infrastructure (jargas) for households. The budget of Rp 3.2 trillion was prepared to build 293,533 house connections (SR) in 54 districts / cities throughout 2020.

 "This is an effort to realize ease of access to natural gas energy and acceleration of good natural gas in reaching all regions in Indonesia," said Acting Director General of Oil and Gas (Oil and Gas), Ministry of Energy and Mineral Resources (ESDM), Djoko Siswanto , after the coordination meeting on the construction of the budget for the 2020 budget year, Thursday (25/7).

This meeting invited relevant stakeholders, including 54 Regional Governments and City Governments who would enjoy the benefits of jargas. At the end of the event, this joint commitment and synergy was marked by the signing of the Minutes of Jargas Development Plan Coordination Year 2020 Budget. "We hope that the benefits of natural gas can be felt as much as possible by the community which leads to an increase in the competitiveness and economic capacity of the community in real terms.

In addition to households that will get direct benefits, the MSME sector will also get significant economic benefits, "Djoko said. Jargas development activities are part of the 2015-2030 National Energy General Plan (RUEN) because they can meet energy needs that are clean, competitive, environmentally friendly and efficient. At present, the Government has carried out construction of jargas from 2009 to 2018 with a total connection of 325,852 House Connections (SR) in 16 Provinces covering 40 Regencies / Cities. For 2020, the Government will build 293,533 SR in 54 Regencies / Cities. This number is very large compared to the number of SRs that were successfully built in 2009 to 2018, which are 325,852 SR in 16 Provinces covering 40 Regencies / Cities.

The area planned for construction in 2020 is Kab. North Aceh, Lhokseumawe City, Kab. East Aceh, Langsa City, Kab. Aceh Tamiang, Kab. Deli serdang, Pekanbaru City, Dumai City, Batam City, Sarolangun City, Jambi City, Kab. Muaro Jambi, Kab. Musi Rawas, Kab. Banyuasin, Kab. Musi Banyuasin, Kota Palembang, Kab. Ogan Ilir, Kab. Ogan Komering Ulu, Kab. Muara Enim, Prabumulih City, Kab. Penukal Abab Lematang Ilir, Kota Bandar Lampung, Kab. Serang, Cilegon City, Bogor City, Kab. Bogor, Kota Bekasi, Kab. Bekasi, East Jakarta City, Tangerang City, South Tangerang City. In addition, Kab. Karawang, Kab. Subang, Cirebon City, Kab. Cirebon, Semarang City, Kab. Blora, Kab. Lamongan, Mojokerto City, Kab. Mojokerto, Kab. Jombang, Kab. Sidoarjo, Kota Surabaya, Kab. Pasuruan, Kab. Probolinggo, Pasuruan City, Probolinggo City, Wajo District, Kab. Banggai, Tarakan City, Balikpapan City, Kab. Kutai Kartanegara, Kota Samarinda, Kab. Penajam Paser Utara.

For the construction of the jargas, the Government assigns PT Pertamina (Persero) through PT Perusahaan Gas Negara Tbk as a subsidiary (natural gas sub holding) to carry out the preparation of the FEED (Front End Engineering Design) -DEDC (Detail Engineering Design Construction) targeted for completion in October 2019 .

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Pertamina and ADNOC will explore opportunities for cooperation in the upstream to downstream sectors

PT Pertamina (Persero) and The Abu Dhabi National Oil Company (ADNOC) agreed to explore opportunities for cooperation across the oil and gas business chain in both the United Arab Emirates, Indonesia and internationally. This was stated in a Comprehensive Strategic Framework (CSF) signed by both parties, Wednesday (24/7).


The agreement was signed by the UAE Minister of State and CEO of ADNOC Group, Sultan Ahmed Al Jaber, and President Director of Pertamina, Nicke Widyawati. Witnessed the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, H.R.H. Sheikh Mohammed bin Zayed Al Nahyan and President Joko Widodo.


Under the agreement, Pertamina and ADNOC will explore opportunities for cooperation in the upstream to downstream sectors. The projects that are considered include participation in the UAE upstream oil and gas sector, refineries, petrochemicals, LNG, LPG, Avtur and the oil and gas retail business in Indonesia. In addition, both parties will also explore various other forms of strategic collaboration.


Sultan Ahmed Al Jaber stated, this agreement would strengthen relations between the two countries. "Indonesia has a rapidly growing industrial base and energy market. We see significant opportunities to work together between the two companies to build projects to achieve common strategic goals, "he said.


This collaboration, added Ahmed, will show the efforts of ADNOC to create value for the entire portfolio and its efforts to expand international investment to become a truly global energy company.


While Nicke said, Pertamina plans to develop an additional refinery capacity of 1 MMBPD through the Refinery Development Master Plan (RDMP) and Grass Root Refineries (GRR) projects. "The partnership with ADNOC will be an important milestone for Pertamina. "The interest of ADNOC to participate in the oil and gas business in Indonesia is very meaningful support for Pertamina, to ensure availability and energy accessibility for the people of Indonesia," he said.


The work team of the two parties will hold a meeting for the next few months to evaluate and select key areas for strategic collaboration across the assets and project portfolios of the two companies. A more specific collaboration collaboration option is expected to be agreed to be executed by the end of 2019.


For Pertamina, this collaboration will support its efforts to take part in the global energy scene as well as a springboard to increase competitiveness in order to compete with international energy players.
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Indonesia Ministry of Energy and Mineral Resources Extend The management contract to ConocoPhillips

The management contract extension has been determined by the Indonesia Ministry of Energy and Mineral Resources to ConocoPhillips as the existing operator on July 22, 2019 at the ESDM Ministry office, Jl. M.H Thamrin, Jakarta. 

The initial Corridor Block contract was signed on December 21, 1983 with three cooperation contract contractors (KKKS), namely ConocoPhillips (54%), Talisman (36%) and Pertamina (10%). The oil and gas block contract will expire on December 19, 2023. With the extension of the contract, the Ministry of Energy and Mineral Resources stipulates that the composition of share ownership will change to ConocoPhilips 46%, Pertamina 30% and Repsol 24%. 

The Corridor Block is the third largest gas block in Indonesia after the Tangguh and Mahakam Blocks. As of the end of June 2019, the realization of gas lifting from the Corridor Block was recorded at 827 million cubic feet per day (million standard cubic feet per day / mmscfd). 

In a press conference in Jakarta on Monday (7/22/2019) the Minister of Energy and Mineral Resources stated that the extension of the Corridor Block management for 20 years until 2043 was based on, among other things, a signature bonus (US $ 250 million and a definite work commitment (US $ 250 million). 

Corridor is said to be using a gross split scheme.The profit sharing contract will implement a gross split scheme in which the KKKS receives a 48.5% share for oil and 53.5% for gas.

(See another article : "Pertamina Was Alarmed Rokan Block Production Continues to Decline Like the Mahakam Block")

The decision of the Ministry of Energy and Mineral Resources above is based on Minister of Energy and Mineral Resources Regulation No.23/208 which is constitutional. Previously, ESDM Minister Sudirman Said had issued Minister of Energy and Mineral Resources Regulation No.15 / 2015 which prioritized the management of contracted oil and gas blocks to Pertamina. However, after Ignasius Jonan became Minister of ESDM, Minister of Energy and Mineral Resources Regulation No. 15/2015 was amended by Permen No.23 / 2018. This Regulation No.23 / 2018 is deliberately prepared to provide opportunities for foreigners to continue to dominate the control of national oil and gas management even though it has been managing for decades. 

Based on the Constitutional Court Decision No.36 / PUU-X / 2012, the oil and gas working area (WK) should only be managed by BUMN as a form of state control. This is in accordance with the mandate of Article 33 of the UDD 1945 in which the state through the Government and Parliament, has the power to make policies, manage, regulate, manage and supervise the state's natural resources. Particularly for management, government control is carried out by the government through BUMN. If the government complies with the constitution, then there is no other alternative except to hand over the management of oil and gas WK whose KKS ends to BUMN. 

Minister of Energy and Mineral Resources Regulation No.23 also contradicts the Energy Law No. 30/2007. Article 2 of the Energy Law states that energy is managed based on the principles of benefit, fairness, sustainability, community welfare, preservation of environmental functions, national security and integration by prioritizing national capabilities. Article 4 of the Energy Law states that in order to support sustainable national development and improve national energy security, fossil energy, geothermal, large-scale hydro resources and nuclear energy resources are controlled by the state and utilized for the greatest prosperity of the people. 

Minister of Energy and Mineral Resources Regulation No.23 / 2018 keeps the mystery of the possibility of corruption and rent seeking through direct appointment of existing KKS contractors to continue the management of an oil and gas WK. SKK Migas Head Dwi Soetjipto said oil and gas production in the Corridor Block would be stable if additional reserves were found. At present, proven gas reserves in this block are recorded at 4 trillion cubic feet (TCF). "Maybe until 2043, there were only a few TCFs. If it is calculated until 2026, there are probably 2 TCFs, "Dwi said.

If it is assumed that the remaining Corridor Block reserves are around 3 TCF and the average gas price is US $ 8-10 / mmbtu, the Corridor Block's gross income potential (before the exploitation fee is deducted) is around US 24 - 30 billion or around Rp 336 - 420 trillion , at an exchange rate of Rp. 14,000 per US $. The cost of acquiring proven reserves of an oil and gas block ranges from 10% to 15% of the reserve value. Therefore, the cost of acquiring 100% of the Corridor Block reserves is (10% - 15%) x US (24-30) billion = US $ 2.4 billion - US $ 4.5 billion!

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Gas Bubble On the YYA block in Offshore North West Java Block (ONWJ).

PT Pertamina Hulu Energi (PHE) stated that there had been a gas bubble on the YYA block in Blok Offshore North West Java (ONWJ). The oil and gas block is located in the waters of the North Coast of Java Island.

Vice President Relations of Pertamina Hulu Energi Ifki Sukarya said, on July 12 the drilling of the YYA-1 well had caused a bubble to appear around the YAA offshore platform operated by PHE ONWJ. The well is about 2 kilometers (km) from the North Coast of Java, Karawang, West Java. "That the YY A1 well is a well that was previously explored and we are preparing for production. It makes holes for production activities. When it pits holes, flow arises, gas bubbles emerge," Ifki said, in Jakarta, Wednesday (07-17/2019 )

Pertamina Hulu Energi ONWJ has activated the Incident Management Team (IMT) to overcome this gas bubble incident.

To avoid undesirable things, Pertamina Hulu Energi ONWJ has closed the YYA1 well drilling activity, while also moving workers on offshore platforms and drilling towers.

"So we immediately at the time of closing, we are IMT activists who are tasked with monitoring the situation on the ground," he said.

Anticipation

At the moment the gas bubble is still happening, Pertamina Hulu Energi ONWJ has also prepared a device to anticipate an oil leak. In addition, people in three villages near the project have been asked to stand by.

"So we will prepare an oil spill response team to prepare a strategy at sea and on land, do not get to land. We already have 3 teams built. Oil boom (a tool for dealing with oil leaks) 3 km in length. There are three villages in expect it to be exposed, "he said.(PE)

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North Stream 2 New Export Gas Pipeline From Russia to Europe Will be In Operation Soon

(Gazprom) North Stream 2 is a new export gas pipeline running from Russia to Europe across the Baltic Sea.The decision to build Nord Steam 2 was based on the successful experience in building and operating the Nord Stream gas pipeline.

The new pipeline, similar to the one in operation, will establish a direct link between Gazprom and the European consumers. It will also ensure a highly reliable supply of Russian gas to Europe. This is particularly important now when Europe sees a decline in domestic gas production and an increasing demand for imported gas.

The Nord Stream 2 project is implemented by the Nord Stream 2 AG project company. The entry point of the Nord Stream 2 gas pipeline into the Baltic Sea will be the Ust-Luga area of the Leningrad Region. Then the pipeline will stretch across the Baltic Sea. Its exit point in Germany will be in the Greifswald area close to the exit point of Nord Stream.

The route covers over 1,200 kilometers.

The total capacity of two strings of Nord Stream 2 is 55 billion cubic meters of gas per year. The aggregated design capacity of Nord Stream and Nord Stream 2 is therefore 110 billion cubic meters of gas per year. Nord Stream 2 will be put into operation before late 2019.(PE)

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PoD Revision of the Masela Block Oil and Gas Project Development Plan was Signed

Saumlaki - Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan has signed a revision of the Masela Block Oil and Gas Project Development Plan for the Tanimbar Islands, Maluku. This was stated by the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto through a press release received today.


The signing was carried out after Minister Jonan cooperated with the Corruption Eradication Commission (KPK) to prevent potential corruption in the development of the block which has a large investment and the use of the cost recovery profit sharing contract (PSC). "Yesterday we had to clarify with the KPK. There were a number of things that were the concern of the KPK, there were some that had been clarified, there were some that had to be monitored, for example procurement. With the KPK completed, (PoD) was signed by the Minister," said Dwi, Saturday, July 13, 2019.


The PoD revision that has been approved by the Minister of ESDM, according to Dwi, is in accordance with the recommendations of SKK Migas. "Because this is a big investment, then the Minister will report to the President. In detail, the Minister will deliver," he said.


Furthermore, Jonan said the government did not delay long after SKK Migas and Inpex signed a Head of Agreement (HoA) on June 16. Now the PoD made based on the HoA is ready to be executed and the next step in developing this Masela Block is FID (Final Investment Decision). "Their FID will process, according to the schedule for another year (complete)," Dwi said.


Previously, INPEX Corporation's Senior Media Specialist Mochamad Nunung Kurniawan explained that INPEX formulated a revised Plan of Development (POD) based on the results of the Pre-FEED work and ongoing discussions with the government so that the project has feasibility from the economic side of the project.


The contractor winning the Pre-FEED Onshore LNG auction is PT KBR Indonesia, while the Pre-FEED Floating Production Storage and Offloading (FPSO) Contractor is a PT Technip Engineering Indonesia Consortium and PT Technip Indonesia. Under the scheme of land LNG development with an annual LNG production capacity of 9.5 million tons.

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7:56:00 PM | 0 comments

Rokan Transfer Management Team Will be Formed in The Near Future

Pekanbaru (PE) - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) said that the Rokan Block transfer management team in the near future will be formed to ensure the smooth transition of oilfield management in Riau Province. "The government will have a meeting point very soon. For the form of the team, it takes time, needs agreements, meetings between the parties, "Head of North Sumatra SKK Migas, Avicenna Darwis, told in Pekanbaru, Riau, Thursday. 

 Avicenna said that this responded to the decline in the production of the Rokan Block which was still managed by PT Chevron Pacific Indonesia at the end of the company's contract period, which expired in 2021. The Indonesian government had decided to submit further management to PT Pertamina (Persero). He acknowledged that the condition at the end of the existing operator contract period would certainly have an impact on the decline in oil production. This was because Chevron certainly reduced its investment in the oilfield.

( Another article : Pertamina Was Alarmed Rokan Block Production Continues to Decline Like the Mahakam Block )

To anticipate these conditions, Avicenna continued, the government formed the Rokan block management transfer team. 

The team essentially said that Chevron and Pertamina were looking for an agreement in the transition process, including issues such as environmental issues, human resources, and data. "The challenge is concerning data, because building data is not built in a year, two years," he said. The issue of the transition of operators in a large work area is admittedly not easy to determine the scheme and investment model. Avicenna said the process was almost complete, which was expected before the end of the 2021 working area contract, Pertamina could enter for investment. 

 "Now it is at the end of the process, because it is very complex, especially the transition of production area (oil) is almost 200,000 or around 190,000 (barrels per day)," he said. Previously, SKK Migas targeted Block Rokan oil lifting this year at only 190,000 barrels of oil per day (BOPD), down 9.2 percent compared to the realization in 2018 which reached 209,478 BOPD.

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Jemena Starts Construction of Queensland Atlas Gas Pipeline

P&GJ– Australia's Jemena said it has commenced construction of the Atlas Gas Pipeline, a 38-mile (60-km) project that will deliver natural gas earmarked for domestic consumption from Queensland's first domestic-only gas supply. Located approximately 12 miles (20km) southwest of Wandoan in Queensland, the Atlas project will include an 8-inch, steel-coated, buried gas pipeline and a compressor station. It will connect gas from Senex Energy’s Atlas gas field to the East Coast gas market via the Wallumbilla Gas Hub.

Jemena’s executive general manager of Gas Markets, Antoon Boey, said construction and commissioning of the Atlas project is expected to be complete before the end of 2019. “We are currently in the early stages of construction, with around 90 people on site conducting clear and grade and stringing activities, and we expect this work to ramp up quickly over the coming weeks,” said Mr. Boey. “The Atlas pipeline and processing facility have been designed to enable further expansion once additional gas reserves become available from the Atlas production area.”

(see another article :"Australia’s gas transmission pipeline system")

Jemena recently awarded Spiecapag Australia a $20 million contract to construct the Atlas Gas Pipeline, while Australian energy and infrastructure services group, Valmec, has been appointed to construct the Atlas Compressor Station. In total, Jemena will invest around $140 million to construct the Atlas Gas Pipeline Project, which is expected to create around 150 to 200 jobs in Queensland. More gas on its way Mr Boey said Jemena was working hard and in partnership with gas exploration companies to bring new gas to Australian homes and businesses.

“We are acutely aware that Australia faces a gas supply crisis, and Jemena is investing heavily in new gas transmission infrastructure to bring new gas supplies into the market. Moving gas from where it is produced to the markets where it is needed at the lowest possible cost and doing so safely and reliably is of utmost importance to Jemena,” said Mr Boey.

“As we transition to a low-carbon future gas will play an increasingly important role in complementing intermittent renewable technologies such as wind and solar generation that, currently, are unable to provide firming power. It will also continue to play an essential role for industries which rely on gas as a primary input into their production processes.”

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12:16:00 AM | 0 comments

Pertamina Was Alarmed Rokan Block Production Continues to Decline Like the Mahakam Block

This year's Rokan Block oil lifting is only 190 thousand BOPD, down 9.2% compared to 2018 which reached 209,478 BOPD.

Pertamina began to worry about the potential decline in Block Rokan production when it took over management from Chevron Pacific Indonesia in 2021.

Moreover, Chevron will reduce investment in the block. The company is also worried that the fate of the Rokan Block will be the same as the Mahakam Block. When managed by Pertamina, the Mahakam Block production continued to decline. "The decline in the production of the Mahakam Block is a lesson learned for us in managing the oil and gas blocks resulting from termination, especially the Rokan Block," said Pertamina's Managing Director, Nicke Widyawati, on Monday (18/7).

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) targets Block Rokan oil lifting this year to only amount to 190 thousand barrels of oil per day ((BOPD), down 9.2% compared to 2018 which reached 209,478 BOPD. Until the first semester of 2019, the realization of oil production ready for sale (lifting) of the Rokan Block only reached 194 thousand BOPD. This figure is lower than the first four months of this year which reached 195 thousand barrels per day (BOPD). While liffting gas in the Mahakam Block in the first semester of 2019 only reached 662 million cubic standards per day (MMscfd) or 60.18 percent of this year's target of 1100 MMscfd. This achievement is far lower than the realization of the Block's gas lifting when it was still managed by Indonesia's Total EP in 2017 which reached 1,286 MMscfd.

(see another article : "Indonesia and Thailand State Owned Oil&Gas Company Take Greater Control Of Mature Oil & Gas Fields")

Therefore, Pertamina hopes that SKK Migas will help maintain the stable production of Rokan. Moreover, the block is one of the biggest contributors to national oil and gas lifting. SKK Migas also brought together Pertamina and Chevron to discuss the matter on Friday last week. But the Upstream Director of Pertamina Dharmawan Samsu has not been able to ascertain the investment scheme or model that will be carried out so that the production of Rokan Block will not decrease when managed by Pertamina in 2021. "Hopefully there is a way out of this problem," Dharmawan said. So far there have been three transition options discussed by Pertamina, Chevron, and SKK Migas. The first option is joint operation. The second option is to maximize the area around the Rokan Block which has not been managed and developed further. The last option, joint planning of the Rokan Block work plan.

The importance of EOR in the Rokan Block One of the things that should be a concern in the management of Rokan Block is the application of advanced enhanced oil recovery (EOR) technology. EOR technology is used by Chevron to maintain the production of the Rokan Block. The technology includes waterflooding and steamflood. In addition, Chevron also tested chemical injection technology at Minas Field, Rokan Block. But according to SKK Migas Deputy Operation Fatar Yani Abdurahman, Chevron no longer applies EOR technology before the contract expires in 2021. Even though the rate of decline in natural production (decline) in the Rokan Block has reached 4-5%.

"The EOR is not a one-two-year project. So it is impossible for Chevron to do that when the contract will end," Fatar said when contacted by Katadata.co.id last weekend. With this condition, Pertamina wants to immediately apply EOR technology to increase the production of the Rokan Block by 2021. "Pertamina plans this in order to boost Rokan production when it is officially managed by Pertamina. However, we still continue to discuss with Chevron for preparation and other opportunities," said Pertamina VP of Corporate Communication Fajriyah Usman to Katadata.co.id yesterday. The EOR technology is predicted to boost oil production. Chevron has tested the technology by injecting chemicals into oil wells in Minas Field. As a result, there is potential for oil production of up to 100,000 barrels per day. With this assumption, Rokan Block's production is projected to reach 500 thousand barrels per day by 2024 in accordance with Pertamina's proposal to the government.

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Australia’s gas transmission pipeline system

Based on https://www.apga.org.au/ Australia has more than 39,000 kilometres of natural gas transmission pipelines that efficiently transport gas under high pressure from where it is produced to the outskirts of cities both large and small. Every molecule of gas used in Australia travels at least part of the way to its destination in a transmission pipeline.

History of pipelines

Australia’s first pipeline was commissioned in the late 1800s to transport water to the Coolgardie gold fields. This set a worldwide precedent by being more than 10 times longer than any other existing pipeline.The Moonie to Brisbane pipeline was the first Australian pipeline built for oil transportation. It was completed in 1964 and was 306 kilometres long. At that time, it was the longest high-pressure pipeline in Australia. The 440km Roma to Brisbane pipeline came into operation in March 1969 and is Australia’s oldest natural gas pipeline.Today, pipelines are also used to transport different forms of gas and other liquids such as oil, slurry and water.

Safety first

Natural gas transmission pipelines in Australia have a good safety record that is longstanding. In addition, there has never been a major gas outage caused by a pipeline incident.The design, construction, testing, operations and maintenance of high-pressure gas transmission pipelines made of steel are underpinned by Australian Standard 2885. The Standard was developed by a working group of industry and government members, and APGA members continue to actively participate in its design, review and development. AS 2885 is written from a safety perspective and requires extensive investigation to identify, document and control any threats to the pipeline along its entire length. It also requires regular review to ensure that any threats identified continue to require consideration and that the controls applied are effective.

The national adoption of AS 2885 by all State and Territory technical regulators and their involvement in its continued development and maintenance has enabled the pipeline industry to achieve a level of regulatory consistency not typical to every industry with state-based regulation. A key safety principle of risk assessment when designing pipelines for all environments is the ‘ALARP’ approach that all risks to the pipeline are to be kept as low as reasonably practicable (ALARP).

Each pipeline is designed to take account of the known and proposed land use and the likely risks in the range of environments through which it passes. The issues that a rural environment poses to a pipeline are very different from those encountered in urban environments. APGA members also invest in research to improve pipeline safety. The Research and Standards Committee is a partner in the Energy Pipelines Cooperative Research Centre which is undertaking research in four program areas: more efficient use of materials, extension of safe operating life of new and existing pipelines, advanced design and construction, and public safety and security of supply.

East Coast gas grid

The transmission pipeline system is an interconnected grid covering Queensland, New South Wales, Victoria, South Australia, Tasmania and the ACT. The network enables natural gas from Bass Strait to be transported to suburban Sydney and industrial users in south-east Queensland. Gas from the Cooper and Eromanga basins also travels eastwards to Sydney and Brisbane as well as south to Adelaide. Natural gas from Bass Strait goes to Tasmania, Victoria and South Australia, and in Queensland gas is transported from the Bowen, Surat, Galilee, Cooper and Eromanga basins across the south of the State. In recent years, most transmission pipelines in the East Coast grid have been made bi-directional which means that gas produced in Queensland can be used in Tasmania and gas from Bass Strait can be sent to as far north as Gladstone where it could be exported and eventually used somewhere in Asia. This interconnectedness has enabled more flexible arrangements for trading in gas and it means gas can be sent where it is needed.

Two systems set to be joined

The Northern Territory has the Amadeus pipeline which takes gas from fields in the Amadeus Basin near Alice Springs to Darwin. Darwin is also an LNG hub, with multiple offshore gas fields delivering gas to the two LNG facilities there. A new gas transmission pipeline, the Northern Gas Pipeline, has just been completed in the Northern Territory and this will connect its gas fields to the East Coast network, linking the Amadeus pipeline to the Carpentaria pipeline near Mt Isa in Queensland.

Western Australia

The onshore gas transmission pipeline system in Western Australia covers significant distances with the Dampier to Bunbury Pipeline at 1539km and the Goldfields Gas Pipeline at 1590km. These bring gas from offshore fields near Dampier to population centres to the south. Other transmission pipelines in WA service mines and mining towns in the Pilbara. Efficient transport

Transmission pipelines have diameters, typically 300mm or more, and they operate under high pressure. These two factors mean that the amount of gas that can be transported is optimised. Pipelines also act as storage vessels which can assist in delivering gas in response to peaks and troughs in demand. Transmission charges amount to 3–8 per cent of household delivered gas costs, and 15–20 per cent of wholesale delivered gas costs.

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10:38:00 PM | 0 comments

Pertamina first exports 4,000 Barrels SF-05 to Algeria, North Africa.

Balikpapan,- PT Pertamina (Persero) for the first time exported Smooth Fluid-05 (SF-05) to 4,000 barrels to Algeria in Northern Africa. The release of 27 Isotank initial exports of SF 05 was carried out in Balikpapan, East Kalimantan, Thursday (4/7). SF 05 is a liquid base oil used to support oil drilling activities in the operating field.

SF-05 products have good performance so that they can be used for a variety of drilling operations. According to Pertamina's Corporate Marketing Director, Basuki Trikora Putra, the total value of exported SF 05 reached more than Rp 10 billion. Export cargo loading is carried out from July 3 to July 6, 2019, from the Balikpapan Refinery which has a production capacity of 1.8 million barrels per year. "This initial export is the beginning of a milestone for SF-05 to be accepted in the global market. This is one of the efforts to synergize Pertamina Group, namely PT Pertamina Lubricants and the Petrochemical Trading team that collaborate in selling overseas through the Export of Prime SF-05 to Algeria. Hopefully SF-05 products can be accepted, not only by customers in Algeria, but also by customers around the world, "said Basuki.

He also conveyed that the SF-05 product had gone through environmentally friendly tests which included biodegradability, LC50 (the effect of SF-05 on marine biota), skin irritation, and eye irritation with better results than those required under US-EPA and OECD international standards.

"SF-05 meets international standards because it is more environmentally friendly than what is currently used, namely diesel oil," said Basuki who is familiarly called Tiko.

According to him, the quality of SF 05 products has been adjusted to the needs of oil fields in Algeria which have drilling mud characteristics with Specific Gravity (SG) between 1.26 - 2.06. SF 05 will be used in the production field of Pertamina Algeria EP (PAEP), which is a subsidiary of Pertamina Internasional EP with Repsol and Sonatrach (Algerian oil and gas BUMN). At present, PAEP operates as many as 67 oil wells in Algeria. This SF-05 product will be used for development wells in 2019-2020. The initial export of the SF-05 will be used at Blok Menzel Lejmet North (MLN), Algeria

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