Pertagas targets to complete Aceh-Belawan pipeline in December 2014
Thursday, February 14 2013 - 02:55 AM WIB
PT Pertamina Gas (Pertagas) has targeted to complete the development of the 370 kilometer gas pipeline linking South Lhoksukon in Aceh and Belawan in North Sumatera in December 2014.
"Initially, we targeted to finish it early in 2014, but due to certain things, we changed it to December 2014," PT Pertamina Gas President Director Gunung Sardjono Hadi said in Jakarta on Wednesday.
Gunung added that for the development of the gas pipe, Pertamina will invest a total fund of about US$550 million, which will be 100 percent from its internal cash. ?That?s only for pipe development and compressor,? he said.
The pipe to be developed will have a capacity to flow 200 MMSCFD at the pressure of 400 psi.
He pointed out that Pertamina had secured licenses from the governors of Nangroe Aceh Darussalam and North Sumatra provinces and it had decided the winners of pipe procurement tender. ?We?re now just waiting for the Final Investment Decision (FID) from PT Pertamina's President Director,? he said.
For the pipe procurement, Pertamina has decided to use the locally made pipes, which are apparently higher in quality compared with the foreign ones. "We?ll use the local pipes, which are higher in quality," he said.
According to him, there had been a number of foreign companies, including from China, offering pipes at cheaper prices. But he said that he is not sure about their quality. ?That?s why we?re reluctant to take them. We prefer the local ones, which are surely higher in quality,? he said.
Editing by Benget Besalicto Tnb.