BPH Migas announces tender for Kalimantan-Java gas pipeline

The Downstream Oil and Gas Regulatory Agency (BPH Migas) announced on Thursday a tender for the special rights to develop a gas transmission pipeline linking gas-rich Kalimantan to Java islands.

BPH Migas said in a tender notice that the 1,219-kilometer long pipeline will start from Bontang city of East Kalimantan and end in Central Java?s Semarang city.

Tender documents are available for free at the agency?s office, while registration for interested bidders, who hold a permit or temporary license to transport natural gas from the Ministry of Energy and Mineral Resources, will be opened between Jan. 16 and Jan. 27.

Local consultant Pendawa Consultama Sejati earlier said the construction of a 42-inch pipeline with a maximum transportation capacity of 1.5 billion cubic feet per day of natural gas is feasible for the pipeline project.

Pendawa completed the feasibility study on the project in February last year.

The study was financed with a US$650,000 grant from the United States? government, while the giant project was originally proposed by state-owned gas transmission and distribution PT PGN.

When contacted by Petromindo.Com, PGN president WMP Simanjuntak said Thursday that PGN was ready to participate in the tender. (godang)