BP Muriah plans to build 205-km undersea pipeline

Thursday, August 30 2001 - 02:03 AM WIB

BP Muriah Ltd., will soon build a 205-kilometer undersea pipeline to transmit natural gas from its Muriah field to Tambak Lorok power plant in Semarang, Bisnis Indonesia reported on Thursday.

Budiman Parhusip, the vice president of the East Java Growth Gas BP Indonesia, said that the undersea pipeline would have the capacity to transmit gas of about 160 billion British Thermal Unit (BTU) per day.

The construction of the undersea pipeline, which would cost some US$400 million, was scheduled for completion by 2004, he said, adding that his company and Pertamina were conducting a survey for the construction of the under pipeline.

?We and Pertamina are still conducting a survey on the location which will be passed by the pipeline from Kepondang to the Tambak Lorok power plant, including the compensation payment,? he was quoted as saying.

According to him, the Muriah gas field, which has a gas reserve of about 500 and 600 billion cubic feet, will be operated jointly with Pertamina. The gas field will supply gas to the Tambak Lorok power plant at a capacity of between 140 and 170 BTU per day.

He said state electricity company PLN and Pertamina signed the gas supply agreement on July 12. Under the agreement BP Muriah will supply PLN from its Muriah gas filed in Kepondang at about 160 billion BTU per day, he added.

The Muriah gas field is operated by BP under a production sharing contract with Pertamina. BP will receive 30 percent of the gas production while Pertamina will receive the other 70 percent. (*)

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