Pertamina ready to supply South Sumatra-West Java gas pipeline

State owned oil and gas company Pertamina has assured that it will be able to provide gas supply for the South Sumatra-West Java pipeline early in July this year in line with the agreement with the pipeline operator Perusahaan Gas Negara (PGN), Bisnis Indonesia reported on Friday.

Pertamina's spokesman Muhammad Harun said in Jakarta on Thursday that the development of gas field which would provide the gas supply for the South Sumatra-West Java pipeline had been 90 percent completed.

"According to the schedule, the project will be completed on May 31 and will be able to provide gas supply to the pipeline on July 1," he said, adding that the gas field would be able to supply up to 500 million cubic feet per day to the two pipelines which were now being built between South Sumatra and West Java.

Under the existing contract, Pertamina will, in the first year, supply gas of 250 million cubic feet per day for 12 years. Of the total gas supply, about 150 million cubic feet per day would be supplied by PGN's customers, and the other 100 million cubic feet per day would go to PLN's Muara Tawar power plant in Bekasi.

Harun said that in the second year, the gas supply for PGN would be increased to 200 million cubic feet per day and to 250 million cubic per day in the following years. (*)