BPH Migas to launch tender for construction of new gas distribution pipeline in five areas
Thursday, October 31 2013 - 02:55 AM WIB
Gas Director at BPH Migas, Umi Asngadah said that the office has allocated Rp 1 billion to carry out the economic and technical feasibility studies for each project. Once the studies have been completed, the tender process will start, Umi was quoted by Investor Daily as saying.
Umi said that the projects will only cover five areas for now considering the limited state budget to fund the necessary feasibility studies.
With the planned tender process, BPH Migas would no longer conduct direct appointment in gas pipeline distribution project. Umi said that the winning bidder for a particular area will have a monopoly over gas distribution pipeline in the area until the capacity of the pipeline has been fully utilized, meaning that BPH Migas will not allow the construction of new gas distribution pipeline until then.
Meanwhile, Bisnis Indonesia quoted Director of Gas at state-owned oil and gas firm PT Pertamina, Hari Karyuliarto as saying that the company was ready to participate in the tender as it has allocated about 30 percent of investment spending next year for the development new gas pipeline network. (*)