BPH Migas insists to tender E. Kalimantan-Java pipeline project

Downstream oil and gas watchdog BPH Migas said on Wednesday it has decided not to give special right to state gas distribution firm PGN to develop the controversial East Kalimantan to Java pipeline project but would instead tender the project.

?Oil and gas law prohibits giving special right to any party to develop common-user pipeline. So, legally, PGN has no right to get special treatment,? said chairman Tubagus Haryono.

Tubagus went on to say that PGN had written to Ministry of Energy and Mineral Resources to ask for special privilege to develop the pipeline grid. ?I don?t know what happen if the ministry decides to give the right to PGN,? he said.

PGN had been conducting studies over the possibility to develop the 1,100 kms pipeline that would link Kalimantan and Java. PGN earlier said that the pipeline would be able to transport some 1 BCFD gas to Java with investment of around US$1.3 billion.

PGN is insisting that under the oil and gas law, it had right to develop the pipeline segment.(godang)