Kalimantan-Java gas pipeline project to begin in late July

The construction of the Kepodang-Tambak Lorok pipeline, a part of the Kalimantan-Java (Kalija) gas transmission project, will be started in late July, this year, Kontan reported on Friday.

Qoyum Tjandranegara, a member of downstream oil and gas regulator BPH Migas, said in Jakarta on Thursday that the agency was still preparing the term and condition of the Gas Transportation Agreement (GTA) for the 200-km Kepodang-Tambak Lorok gas pipeline.

?We hope all the document can be finished this week so that the construction can be begun at the end of this month,? he added.

The government awarded the Kalija pipeline project to PT Bakrie and Brothers in 2006, but the construction of the project has been delayed due to lack of gas supply. According to the plan, the pipeline project will be built in stages. In the first stage, the company will build the Kepodang-Tambak Lorok. The construction will be then continued from Kepodang to gas fields in Kalimantan.

Qoyum said that the Kepodang-Tambak Lorok gas pipeline will transport gas from Kepodang gas field and from a floating storage gasification unit (FSRU) to industrial users in Central and East Java.(*)