Kalija I pipeline project 49.5% complete

State controlled gas distributor PT Perusahaan Gas Negara (PGN) announced on Thursday that the development of the Kalija I pipeline project in Central Java has been running as scheduled and has now reached 49.5 percent of completion.

The 207-km pipeline will transmit gas from the Kepodang field offshore Central java operated by Malaysian firm Petronas to the PLTGU Tambak Lorok power plant owned by public utility PT Perusahaan Listrik Negara (PLN) in the province?s capital of Semarang.

?As of March, 2015, the progress of the project has reached 49.5 percent of completion,? said Ismet Pane, President Director of PT Kalimantan Gas (KJG), a subsidiary of PGN, which will operate the pipeline.

Investment for the project is between US$250 million to $300 million.

There are two work packages now being worked on for the project, namely the construction of Offtake Receiving Facilities (ORF) onshore and the installment of submarine pipelines, Ismet said.

Once finished, PLN will able to save Rp 2 trillion per year in fuel costs as result of using gas rather than diesel oil at the power plant, he said.

Editing by Johannes Simbolon