Groundbreaking for Kepodang-Tambak Lorok gas pipeline on March 9
Tuesday, February 25 2014 - 01:33 AM WIB
IDX-listed PT Bakrie & Brothers Tbk is scheduled to hold groundbreaking on March 9, 2014 for the construction of a gas pipeline linking from Kepodang gas field in Central Java operated by PETRONAS Carigali Muriah Ltd, a unit of Malaysian energy firm PETRONAS, to Tambak Lorok power plant, also in Central Java, according to an official at downstream authority BPH Migas.
Gas Director at BPH Migas Umi Asngadah told Petromindo.com on Monday that the construction of the pipeline is expected to be completed in the middle of 2015 or August 2015.
Umi said, the Engineering, Procurement, and Construction (EPC) works for the project will be undertaken by PT Kalimantan Jawa Gas (KJG), a joint venture between PT Bakrie & Brothers Tbk and state owned gas distributor PT Perusahaan Gas Negara (PGN) (Persero) Tbk. "Costs for the EPC works are estimated at Rp 1.6 trillion," she added.
Separately, Head of Gas and Fuel Division at state owned electricity company PT Perusahaan Listrik Negara (PLN) (Persero), Suryadi Mardjoeki told Petromindo.com that PLN?s Tambak Lorok power plant is ready to receive gas from the Kepodang field in Muriah block.
"Since the pipeline will be completed next year, that means then there will be no gas supply from the field this year," he said.
PLN and Petronas signed a Gas Sales Agreement (GSA) in June 2012, which is effective 30 months after the signing of the GSA. This means the gas supply will start at the end of 2014. Bakrie & Brothers signed a Gas Transportation Agreement (GTA) with both firms in December 2012 under which the former will pipeline the gas at the end of 2014.
Kepodang?s GSA is valid for 12 years at a price of US$ 4.61/MMBTU with an escalation of 8.6 percent per year. According to Suryadi, PLN pays the price plus the cost of transportation from the well head to the Tambak Lorok power plant. The Kepodang field will supply gas for 116 BBTUD or total volume of about 487,200 BBTU.
Deputy for Operational Control at upstream oil and gas authority SKK Migas Muliawan told Petromindo.com that that the Kepodang project has been running on schedule. "God willing, the project will be completed in October 2014," he said.
The Kepodang-Tambak Lorok gas pipeline is part of the Kalimantan-Jawa (Kalija) pipeline project which Bakrie plans to develop to channel gas from East Kalimantan to Central Java. The Kepodang-Tambak Lorok is now named the Kalija Phase I project.The contract to develop the Kalija pipeline project was awarded to Bakrie in 2006.
Meanwhile, Andi Noorsaman Sommeng, Chairman of BPH Migas, in a hearing with the House of Representatives? Commission VIII which oversees among others energy affairs, confirmed that the groundbreaking for the Kepodang-Tambak Lorok pipeline project will be held on March 9.
The groundbreaking ceremony will be held at the site area of PT Indonesia Power in Semarang.
?The Kalija Phase II (from Bontang, East Kalimantan to Semarang) is now in the phase of establishing gas offtaker consortium,? Andi said.
BPH Migas? Gas Subdirectorate Head Triwahyu Purwanto said gas to be channeled through the Kalija Phase II pipeline will be off-taken by PLN, PGN and PT Pertagas, a subsidiary of state owned oil and gas firm PT Pertamina (Persero).
Editing by Johannes Simbolon