Kodeco does not need to relocate pipeline: BPMIGAS

Upstream oil and gas regulator BPMIGAS said on Thursday that the gas pipeline owned by oil, gas firm Kodeco Energy, which passes through Surabaya?s Tanjung Perak Port, does not need to be relocated, Investor Daily reported Friday.

Hamdi Zainal, head of BPMIGAS for East Java, Bali, Maluku and Papua regions, said that Kodeco just needs to lower the position of the pipeline by another 2.5 meters from 2.7 meters below seabed at present.

He said a relocation of the pipeline would risk disrupting gas supplies to power plants in East Java and, as such, power supplies in the Java-Bali grid.

In November last year, Sunaryo, the Director General of Sea Transportation at the Ministry of Transportation said the Kodeco gas pipeline which passes the province's shipping lane should be relocated as it could pose obstacles to economic development of the area.

He said that as a short-term solution, the gas pipeline should placed at minus 16 Low Water Spring (LWS). To this end, a survey is still underway to find out about the right location for the pipeline.

Kodeco uses the pipeline to transmit gas from West Madura PSC and Poleng TAC, both operated by Kodeco, to onshore processing facility in industrial city of Gresik. Kodeco sells its gas to state-owned gas distribution firm PGN and fertilizer maker PT Petrokimia Gresik. (*)