REPUBLIKA.CO.ID, BATAM -- The gas from Natuna's D-Alfa Block will be supplied to the islands of Bintan and Karimun in a bid to support industrial growth in the free trade and free port areas.
Secretary of Riau Islands' Mining and Energy Service Darwin stated here on Wednesday that the plan to supply gas produced in Natuna to Bintan had been incorporated in the National Gas Balance plan.
The state-owned gas company PGN has also agreed to distribute Natuna's gas to the regions in the islands of Bintan and Karimun.
The government and PGN have prepared short-, mid-, and long-term plans for gas distribution in Bintan and Karimun.
According to the short- and mid-term plans, the government has prepared two distribution schemes for Bintan and Karimun, comprising direct distribution through a pipeline network and distribution through dispatches in the form of CNG and LNG.
"Two alternatives have been outlined, one being through a pipeline network from Panaran in Batam to Bintan, and secondly, virtual dispatches through Batam to Bintan in the form of CNG and LNG," Darwin revealed.
The government will evaluate the alternatives and select the most viable option. It is now collecting data to support its study on the matter.
In the long run, the distribution will be carried out through a pipeline network from Natuna's D-Alpha Block to Bintan. The pipeline network will be built in the first place.
"So far, gas is distributed in Batam only. The Riau Islands province has huge gas reserves, of which 30 percent are in Natuna, though no gas is distributed to Riau Islands," he pointed out.
Based on the law, Riau Islands should receive a set quota of the gas, which is a domestic market obligation, he claimed.
Riau Islands should at least receive a quota of 700 million standard cubic feet per day (mmscfd), but until now, it has got none.
"Based on the business-to-business contract, Riau Islands has been allocated gas of that set volume," he noted.
Darwin said the industries in Bintan and Karimun were in dire need of gas, which was far cleaner and efficient than other forms of energy.
The gas is needed for the coal processing, aviation supporting, manufacturing, and tourism industries.
"Karimun is a fast-growing island and is included in the Free Trade Zone," he remarked.
PGN Spokesman Riza Buana said his company will build a gas pipeline network, which will connect gas fields in the Natuna Sea with other islands in the Riau Islands Province, such as Bintan and Karimun.
PGN Communications Division Head Irwan Andri earlier noted in a press statement that the company will build a 600-kilometer-long natural gas pipeline network that will help supply gas to the consumers in Riau Islands.
It will also build a six-kilometer-long gas pipeline network from the West Natuna Transmission System (WNTS) to the Pemping Island, Riau Islands Province.
The second plan of the project constitutes PGN's work focus in its cooperation with the regional government of Riau Islands Province in building infrastructure and utilizing natural gas.
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