PGN mulls Kalimantan-Java pipeline development

Plan is currently underway to develop 1000-kilometer gas transmission pipeline that would connect gas rich province East Kalimantan with industrial province of East Java, according to state gas distribution company PGN.

The project will enable East Kalimantan gas producers such as Unocal Indonesia, Vico Indonesia and TotalFinaElf E&P Indonesie to supply 700 million standard cubic feet per day (MMCFD) to 1 billion cubic feet per day of gas to East Java, said Adil Abas, PGN?s business development director told Petromindo.Com in an interview late Thursday.

Adil said the project was estimated to require US$ 1.1 billion investment and Asian Development Bank (ADB) had indicated its willingness to provide US$ 200 million in project financing.

He said the project could commence as early as 2005 and could become onstream in 2007.

?Once realized, the project will guarantee cheap, clean and reliable energy supply to East Java,? said Adil.

Adil said PGN will offer cooperation with China counterparts to develop the project during President Megawati?s visit to China to attend Indonesia-China Energy Forum in March 24, 2002.(alex/godang)