PGN goes ahead with construction of distribution pipeline in Banten

Friday, February 16 2007 - 02:15 AM WIB

State-owned gas distribution company PT Perusahaan Gas Negara (PGN) Tbk. said it would go ahead with the construction of gas distribution pipeline in Banten, West Java despite local residents' appeal to halt the project temporarily.

PGN's corporate secretary Widyatmiko Bapang said in a statement in Jakarta Thursday that the company had met requirements and followed the existing procedures, including the obligation to get a license and an approval of the required Environmental Impact Analysis (AMDAL) study.

"PGN continues to coordinate with Banten provincial administration, regency administration and other related parties to find best solution to the problem arising from the field (when the project is carried out)," he said.

Local residents have reportedly expressed an objection to the pipeline construction project and wanted it to be stopped temporarily because the project is not directly related to PGN's plan to distribute gas through the South Sumatra-West Java (SSWJ) gas transmission pipeline scheduled for March 2007.

Widyatmiko said that the gas distribution pipeline now under construction in Banten is designed to transmit gas to the area by the end of 2007 when all of the necessary facilities of SSWJ are completely installed.

According to him, the pipeline has a low and medium pressure and is safe for residents living around the pipelines.

Widyatmiko went on to say that the natural gas pipeline construction standard that the company has set refers to the tight conditions applied in the oil and gas industry which ensure the safety of the surrounding residents and the distribution ability in compliance with the oil and gas law no. 22, 2001.

He said that PGN also continues to socialize the project to Banten residents whose villages will be passed through by the pipeline so that they can understand and aware that the gas distribution pipeline project is beneficial to local economic growth. "PGN is fully responsible for the risk of carrying out the project and the impact that may have," Widyatmiko asserted. (godang)

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