PHM, SKK Migas Inaugurate SMGS to RU V Project

PT Pertamina Hulu Mahakam (PHM) and the Upstream Oil and Gas Business Regulatory Task Force (SKK Migas) on Thursday (2/25) inaugurated the South Mahakam Gas Supply to Refinery Unit V (SMGS to RU V) Project, supplying gas from the South Mahakam Field to the Pertamina's RU V Balikpapan Refinery through a facility owned by PT Pertamina Hulu Kalimantan Timur (PHKT).

Deputy Head of SKK Migas Fatar Yani said the 50 MMscfd-capacity SMGS to RU V project is completed on time. Its strategic position is crucial to improve gas distribution connectivity from producers to consumers. "The project will increase the reliability of the national gas distribution system in the long term and support the development of existing gas fields in the East Kalimantan and its surroundings," he said in a written statement, Friday (2/26).

Though it has just inaugurated on February 25, PHM has channeled gas from the South Mahakam Field to RU V since January 17. PHM General Manager Agus Amperianto said the project could cut Balikpapan refinery's operating costs to US$12 million per year, assuming that the demands of 47 MMscfd are met. The project also lowered costs for fuel and flares by up to US$3 million per year. "PHM is benefited since it gets a better domestic gas sales price," he said.