House supports Sumatra-Java, Kalimantan-Java pipeline plans

The House of Representatives (DPR) on Thursday expressed support to the plans of state gas distribution company PGN to develop South Sumatra-West Java and East Kalimantan-East Java gas pipelines.

?Commission VIII deems it necessary to develop energy other than fuel oil. Accordingly, it fully supports PGN?s plans,? said commission chairman Iwan Prayitno after a hearing with PGN president director WMB Simandjuntak. The commission deals with energy and mineral resources affairs.

PGN is conducting feasibility studies over its plans of piping gas from South Sumatra to West Java, and from East Kalimantan to East Java.

Simandjuntak had said earlier the East Kalimantan-East Java project alone would cost around US$1.1 billion, which could be borrowed from overseas.

East Java, one of the most developed provinces in Indonesia, is facing serious gas shortage due to a decline in gas supply from BP Kangean?s Pagerungan field. (Godang)