PGN interested to build Muriah?Tambak Lorok gas pipeline

State-owned gas transmission and distribution firm PT Perusahaan Gas Negara (PGN) is interested to build a 200-kilometer underwater gas pipeline, which will connect the Muriah block offshore Central Java with the Tambak Lorok combined cycle power plant in Semarang city, Central Java province.

The block is operated by a unit of Anglo-American energy giant BP PLC, while the Tambak Lorok plant is owned by state owned electricity firm PT PLN.

?We will hold talks with (oil and gas upstream authority) BP Migas soon,? PGN?s development director Adil Abas Reksoatmodjo told Petromindo.Com on Wednesday.

The Muriah block, which was discovered in 1980, contains estimated recoverable gas reserves of 500 billion standard cubic feet (BSCF). BP operates the block with a 100 percent working interest.

Last July, BP and PLN signed an agreement on gas supply with a capacity of 140 MMSCFD from the former's Kepodang gas field to the latter?s 1,058 Megawatt power plant starting in 2006 for a 12-year period.

The idea of building a gas pipline linking the Muriah block and the Tambak Lorok power plant dates back several years ago. In 1999, BP said it had a plan to build such a pipeline with an investment of US$400 million. It remains unclear whether BP will go ahead with or has dropped the plan. (alex)