Why Reassessing Dumai-Sei Mangke Pipeline Project Is Crucial

Summary

The Energy and Mineral Resources (ESDM) Ministry will review the feasibility study (FS) of the Dumai-Sei Mangke pipeline project for natural gas transmission since PT Perusahaan Gas Negara Tbk (PGN) made it in 2014. “Considering many have changed in the last six years, it's necessary to conduct another review. That should be a major consideration,” ESDM Ministry’s director of oil and gas infrastructure planning and development, Alimuddin Baso, revealed on Tuesday (11/17).

He then explained that the pipe design in the 2014 study had a diameter of between 12-28 inches, with a total investment of US$483 million. However, the funding scheme for the Dumai-Sei Mangke pipeline project has yet to be determined. There are two funding alternatives: from the private or the state budget (APBN), such as state capital injection (PMN) and public-private partnership (PPP).

According to Alimuddin, the Dumai-Sei Mangke pipeline projects would help maintain natural gas supplies in North Sumatra and Riau Provinces. It would also be useful to strengthen ConocoPhillips’ existing transmission (Grissik) Ltd and Jambi via the Grissik-Duri-Dumai pipeline. Gas supplies also come from LNG Regas Arun through Arun-Belawan Sei Mangke pipeline; PT Pertamina Hulu Energi (PHE) NSB & NSO’s gas fields; and PT Medco E&P Malaka’s Blok A. “It will also stimulate the new industrial estates along Dumai-Sei Mangke gas pipeline,“ he continued.

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