PGN begins construction of South Sumatra-West Java pipeline

The state owned gas distribution company Perusahaan Gas Negara (PGN) officially began the trenching works for offshore part of the South Sumatra-West Java (SSWJ) Phase I gas pipeline project on Monday at a ground breaking ceremony attended by PGN's president WMP Simanjuntak at Bojonegara, Banten.

The construction of the 105 km Labuhan Maringgai-Cilegon offshore pipeline will be carried out by Nippon Steel Corporation of Japan as the main contractor and Geocean and Dharti as subcontractor.

Simandjuntak said that the gas pipeline project which would cost about US$492 million to build would link Pertamina's Pagardewa gas field in Terbanggi Besar regency in East Lampung and PGN's distribution terminals in Cilegon and Serpong in Banten, West Java.

He hoped that the construction could be completed in October so that the pipeline could be operated in December, this year, one month ahead of the initial schedule. The pipeline was initially scheduled to begin operation in February, next year.

Simandjuntak said that PGN was also preparing the construction of the second section of the Phase II of SSWJ which will link ConocoPhillips' gas field in Grissik, South Sumatara and PGN's gas distribution terminal Rawamaju, Bekasi. The 661 km pipeline project will cost about US$619 million to build. (Godang)