Kalimantan-Java gas pipeline might also be used to deliver CBM
Monday, July 2 2007 - 01:29 AM WIB
The East Kalimantan-Central Java gas pipeline project might be also used to deliver coal-bed methane (CBM) in addition to natural gas as initially planned, according to a senior official of BPH Migas.
Tubagus Haryono, the head of BPH Migas, the regulatory body for oil and gas downstream industry, said in Jakarta Saturday that CBM found in many parts of East Kalimantan could be delivered to Java through the East Kalimantan-Central Java gas pipeline which would be built by PT. Bakrie & Brothers.
"My hope is that the pipeline can be also be used to deliver the CBM and right now, BPH Migas is conducting the feasibility study for that purpose,” he said
According to Tubagus, a gas pipeline is just like a toll way, which can be used by any forms of vehicles. "So does the gas pipeline, it can be used to also deliver CBM in addition to natural gas," he added.
At present, several companies have embarked on the exploitation works on CBM potentials in Sumatra and Kalimantan, but thus far no one has been reported to invest substantial amount of funds due to unclear regulation regarding the fuel.
Bakrie won the tender to build the pipeline in July last year, outbidding two other companies PT Rekayasa Industri and PT Barata Indonesia. However, Bakrie is required to find the gas supply for the pipeline.
BPH Migas earlier said that it would review the contract because the company had difficulties in finding the sources of gas for the pipeline in East Kalimantan.
Most of the existing gas production in the province will be used to meet LNG export commitment, and the gas needs of the Bontang-based state owned fertilizer company PT Pupuk Kaltim. (godang)