Govt to install pipelines to restore gas supply to Petrogres

The government said it would install gas pipelines to restore the supply of gas to state fertilizer company PT Petrokimia Gresik (Petrogres) and to help the company resume its operation, Republika reported Wednesday.

Minister of State Enterprises Sugiharto said in Jakarta Tuesday that the planned installation of the pipelines using dual system has been agreed by upstream oil and gas regulator BP Migas, state gas distribution company Perusahaan Gas Negara (PGN), state electricity company Perusahaan Listrik Negara (PLN) and state oil and gas company Pertamina and Petrogres in a meeting.

?The planned installation of the pipelines which will adopt dual system is expected to ensure the gas supply to Petrogres and help the company resume its operation in early 2007,? said Sugiharto.

He explained further that the first way of installing the pipeline is under fast track system and another one is by installing new transmitting pipeline along Porong river, which is between 12 and 15 kilometer long. ?It will take between 10 and 12 months to install the new pipelines under the second system,? he said.

Meanwhile, Petrogres president director Arifin Tasrif said that Petrogres is likely to buy gas from Kodeco to overcome gas shortage problem.

Earlier, Petrogres said that the company is in force majeure due to the suspension of gas supplies following an explosion in the gas pipeline at Sidoarjo in East Java.

Before the accident, Petrogres got supply of gas from EMP Kangean. (*)