Bontang opposes the Kalimantan-Java gas pipeline project

Forum Peduli Gas (Fopgas), a gas advocacy group based in Bontang, East Kalimantan, has strongly opposed the government's plan to build an inter-island gas pipeline project linking the province and Central Java, Bisnis Indonesia reported on Monday.

"We fear that the East Kalimantan and Central Java could pose a big social problem in Bontang," the chairman of the forum, Alief Bakhtiar said in Jakarta last week, adding that the government should involve the local people in the construction of the gas pipeline.

According to him, the construction of the pipeline could pose a serious problem to two major companies in the regency; fertilizer plan PT Pupuk Kaltim and LNG producer PT Bontang, which at present uses the larger part of the gas from the province.

"If the government goes ahead with the plan, this could result in massive layoffs in the companies," he added.

Several other organizations have also criticized the pipeline project, partly because the lack of gas supply from the existing gas wells in the province.

According to the study of the team which comprises of senior officials from the Ministry of Energy and Mineral Resources, BP Migas, BPH Migas and the office of Coordinating Minister of Economy, the gas pipeline project would not be feasible for long-term purposes.

According to the team's study, the proven gas reserves of about 4.3 trillion cubic feet is only enough to meet the gas needs in Java for 10 years. With such short lifespan, the gas pipeline project will be too costly, the team concluded. (*)