Pertamina and ConocoPhillips in gas deal

JAKARTA, November 6, 2017 – Pertamina and ConocoPhillips have entered into a gas-sale-and-purchase agreement on Friday for the delivery of some 65 trillion Btu in gas resources originating from the US operator’s Corridor block in South Sumatra. The contract is slated to start in 2018 and last until 2023.

Under the terms of the agreement, Corridor block will supply 1.61 mcm (57 mcf) of natural gas to Pertamina’s 175,000-bpd Dumai refinery located on the Riau Islands between 2018 and 2020. That figure will jump to 3.4 mcm (120 mcf) of natural gas from 2021 to 2023.

The 67-kilometre Duri-Dumai pipeline, with a price tag of some USD 76 million, will transport the gas from the Corridor block to the Dumai refinery, once completed. Slated to reach the final stages of construction in Q3 2018, the infrastructure will have capacity of 3.96 cm (140 mcf) per day.

“This is a strategic step for us to minimise the fuel costs coming from the operation of our refineries,” Yenni Andayani, Pertamina’s gas director, said in a statement.

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