Govt to speed up the construction of gas pipeline projects

The government will speed up the construction of an integrated gas pipeline linking Sumatra, Java and Bali, and several other areas including in East Kalimantan as part of the program to promote the use of natural gas in the country, Investor Daily reported on Friday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Thursday that the government hoped the gas pipeline projects which would link all major gas fields and power plants in Sumatra, Java, Bali and East Kalimantan could be completed before the end of the tenure of the current government in 2009.

"(State owned oil company) Pertamina, (state owned electricity company) PLN and (state owned gas distribution company) PGN will be involved in the massive projects," the minister told newsmen following a meeting with Vice President Jusuf Kalla.

According to Purnomo, the government would open next month the pre-qualification tender for the construction of a gas pipeline project, which will link Cirebon, Semarang, and Gresik, East Java. The gas pipeline project will be built in two sections - one, about 290 km length, will connect Cirebon and Semarang, and the other, about 390 km length, will link Semarang and Gresik. The gas pipeline projects are scheduled for operation in 2008.

Other projects including an inter-island gas pipelines linking South Sumatra, and Cilegon, and Bekasi were under construction. "Hopefully, the projects could be completed in 2006 or early 2007 at the latest," he said.

The minister said that the government was also working on a plan to build a 1,200 km inter-island gas pipeline to link major gas fields in East Kalimantan and existing gas pipelines in East Java. (*)