PGN modifies plans for gas delivery from Sumatra to Java
Wednesday, July 6 2005 - 03:15 AM WIB
It now plans to deliver gas from state-owned oil and gas firm PT Pertamina?s gas fields in South Sumatra through the South Sumatra-West Java (SSWJ) Phase II pipeline, rather than through the SSWJ Phase I pipeline, as initially scheduled. This is in anticipation of a psossible delay in the completion of the SSWJ Phase I pipeline.
?It is important to note that the ongoing completion of SSWJ phase I project is in the evaluation process of Engineering Procurement Construction (EPC) contract. The evaluation result will then be submitted to Japan Bank for International Cooperation (JBIC) for approval. Thus, the construction is estimated to complete end of March 2007,? PGN president WMP Simandjuntak said in a statement recently.
PGN is constructing two pipelines connecting Sumatra and Java islands in order to support higher demand for natural gas in West Java. The SSWJ Phase I is dedicated to transport natural gas from Pertamina?s gas field to PGN?s industrial customers in the western part of West Java. The project was initially expected to be completed by the end of 2006.
Meanwhile, the SSWJ phase II is aimed to deliver gas from ConocoPhillips-operated Corridor gas block in South Sumatra to PGN?s industrial customers in the northern part of West Java.
According to the statement, the SSWJ phase II has larger updated capacity of 520 million standard cubic feet per day (MMSCFD) that is capable to transport from 170 to 400 MMSCFD of gas from ConocoPhillips and from 150 to 250 MMSCFD from Pertamina.
Simandjuntak said PGN would accelerate the completion of SSWJ Phase II project end of 2006 or 4 months earlier than scheduled in the Gas Sale and Purchase Agreement signed between PGN and ConocoPhillips.
?Presently, the tender of Pipeline Construction Contract (PCC) for SSWJ phase II is under process. All PCC contracts are expected to be signed mid October 2005 in order to commence construction works beginning November 2005, and targeted to be completed end October 2006,? Simanjuntak added.
PGN earlier said it had secured contracts to market about 70 percent or about 445 million cubic feet per day of total capacity gas to be supplied from South Sumatra to new customers in West Java.(robert)
