PGN's gas pipeline faces another delay

The construction of the Grissik-Pagardewa gas pipeline project in South Sumatra will face further delay because the floods from Musi river in the province are still continuing, Kontan reported Thursday.

 

PGN's president director Sutikno said in Jakarta Wednesday that PGN had almost totally halted the construction works because most of the areas along the four-kilometer-pipeline were affected by the floods that began on June 7.

 

He said that the floods would cause a delay in the operation of the company's South Sumatra-West Java pipeline project which was originally scheduled to begin full operation by the end of July.

 

"The length of the delay will become clear by the end of next week," Sutikno said.

 

The company is still calculating the losses that the delay will cause on PGN. If the delay lasts for two months, PGN will fail to deliver 50 MMCFD of natural gas, according to Sutikno.

 

Earlier, Sutikno said that the delay in the Grissik-Pagardewa pipeline would not affect the operation of the Pagardewa-Muara Bekasi pipeline section which was scheduled to go on stream at the end of July this year.

 

"The Pagardewa-Muara Bekasi pipeline remains on track for operation at the end of July. And the gas can reach customers in Bekasi in August," Sutikno said on June 11, 2007.

 

The Grissik-Pagardewa pipeline will be integrated with PGN's two gas pipelines linking Pagardewa and Cilegon, Banten, and Pagardewa and Muara Bekasi, West Java . The first section connecting Cilegon has begun operation early this year, while the second section linking Muara Bekasi is scheduled for operation in July.

 

When fully operated, the two gas pipelines will be able to provide gas supply of up to 232 million cubic feet per day to the company's customers in Cilegon and in Bekasi. (*)