Kodeco builds new gas pipeline offshore East Java

South Korean oil and gas firm Kodeco Energy Co.is building a new gas pipeline offshore East Java to replace the existing one which is considered dangerous to shipping traffic.

"The pipeline is being built starting yesterday," Elan Biantoro, spokesperson for oil and gas upstream sector regulator BPMIGAS, told Petromindo.com on Thursday.

The existing pipeline that transmits gas from Kodeco's Madura block to East Java's mainland and crosses the province's shipping lane is situated nine meters below the sea level. Given its low position, it could pose danger to ships coming and leaving the province's Surabaya port.

The port authorities have warned the South Korean company of the danger and the latter has promised to lower the position of the pipeline this year and later relocate the pipeline.

Elean said Kodeco is building the new pipeline 19 meters below the sea level with a total investment of between US$12-$16 million, which will be recorded as "cost recovery" item.

Elan also said the Ministry of Transportation will lower the seabed level at the area to 16 meters from 9 meters at present. The project will take six years to complete. (bernard)