Bakrie to build C. Java pipeline
Monday, March 23 2009 - 07:51 PM WIB
Government has appointed IDX-listed firm PT.Bakrie & Brothers to build a 200-km transmission pipeline to transport gas from Petronas-operated Muriah block in Central Java to Tambak Lorok power plant owned by state electricity firm PLN, downstream oil, gas regulator senior official said Monday.
BPH Migas Chairman Tubagus Haryono told reports that the company--controlled by the influential Bakrie family-- will invest US$150-170 million to develop the pipeline, which is expected to be completed in 2011.
Petronas is expected to supply PLN 200MMCFD of gas from Kepodang field under the 10-year contract.
Tubagus said the Muriah-Tambak Lorok segment is part of right given to Bakrie & Brothers to build a 1,200-km pipeline from East Kalimantan to Java.
Bakrie won the right to develop the pipeline in 2006 after submitting the lowest toll fee US$0,84 per MMBTU.(godang)