Pertagas to start construction of Java pipeline 2011

PT Pertagas, a gas distribution wholly-owned subsidiary of state oil and gas company PT Pertamina (Persero) plans to start construction of its 256-km pipeline concession that would link the city of Gresik in East Java with Semarang in Central Java next year.

President Director Suharyanto told Petromindo.Com on Thursday that the pipeline project is expected to be completed in 2013 and would likely transport gas from ExxonMobil-Pertamina operated gas field in Cepu block and from the proposed floating LNG receiving terminal to be built by its parent company in East Java.

?We would commence with the pipeline development and would not wait until gas sources are secured. That would be too long,? he said, adding that the Company is now re-evaluating EPC costs.

State railway firm PT KAI has allowed Pertagas to develop its pipeline along railway route, thereby saving the latter time and money to appropriate land to lay the pipeline.

Elsewhere, he also said that Pertagas will start development of 150-km oil pipeline that would link Pertamina?s field in Tempino, Jambi to Plaju refinery in South Sumatra, replacing the old and worn-out pipeline.

Suharyanto said the pipeline construction will be completed next year. The pipeline will be capable of transporting 10,000 barrels of oil per day to Plaju refinery. (bernard)