BPH Migas to tender Muara Bekasi-Cirebon gas pipeline next year

Monday, November 6 2006 - 01:55 AM WIB

BPH Migas, the regulatory body in charge of oil and gas downstream industry, plans to tender the special right to develop and operate a gas pipeline linking Muara Bekasi and Cirebon in January, next year.

BPH Migas' chairman Tubagus Haryono said in Jakarta last week that the revision of the master plan for the construction of the 220-km gas pipeline had been submitted to the ministry of energy and mineral resources for approval.

?We will go ahead with the plan to build the gas pipeline between Muara Bekasi and Cirebon,? Tubagus said.

He said that the revision of the master plan was needed because state oil and gas firm PT Pertamina and state owned gas distribution company PT Perusahaan Gas Negara (PGN) had built and operated their respective gas pipeline linking Muara Bekasi and Cirebon.

"We don't want an idle gas pipeline in the area, so we will revise the master plan " he said.

The project will cost US$35 per kilometer, Tubagus said.

Tubagus said the agency proposed three options in the revised master plan, which includes the construction of a gas pipeline between Muara Bekasi and Cirebon at full length of 220 km, between Cirebon and Citarik with 160 km length and between Cirebon and Kandang Haur Timur with 50 km length.

Recently PGN apposed in a press release BPH Migas? plans to auction gas distribution areas where PGN is already operating.

The planned Muara Bekasi-Cirebon pipeline would be linked to the South Sumatra-Cilegon network, Tubagus said on May 2006.

Each of the pipelines will have a capacity of between 250 and 700 million standard cubic feet of gas per day. (godang)

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