ConocoPhillips eyes Dumai-Belawan gas pipeline project

ConocoPhillips has expressed its interest to take over the 400-kilometer gas pipeline project linking Belawan in North Sumatra and Dumai in Riau from state owned gas distribution company PT Perusahaan Gas Negara (PGN), Bisnis Indonesia reported on Thursday.

The project worth about US$380 million will be built by state owned electricity company PLN to supply natural gas to the company?s power plants in North Sumatera.

PLN?s director for power generation and prime energy, Ali Herman Ibrahim, said in Jakarta on Wednesday that Conoco offered to take over the project after PGN did not show its serious commitment to begin the project.

He said that Conoco planned to link the Belawan-Dumai gas pipeline with the South Sumatra-Dumai pipeline project which would get a gas supply from its gas field in the province.

Conoco also offered to sell its gas to PLN of North Sumatra at US$2.7 per million British thermal unit (MMBTU) but Herman said that the price offered by Conoco was still too high. ?PLN actually want between US$2.45 and US$2.6 per MMBTU,? he said. (*)