PGN starts offshore pipeline repair

Friday, March 13 2009 - 11:06 PM WIB

IDX-listed state gas distribution firm PGN said its gas transmission unit PT.Transportasi Gas Indonesia Transgasindo will start works to replace a 23-km segment of its Grissik (South Sumatra) to Singapore pipeline network.

Lay barge and a number of tugs and barges will be utilized to install 28? pipeline in Kuala Tungkal-Panaran section of the pipeline, using hot tap method to seam the new segment with the existing pipeline, the company said in a statement released Friday.

Transgasindo found out about buckles in the pipeline segment in 2007, which had caused limitation in gas transmission volume and pressure.

Transgasindo expects to increase pipeline pressure in the second quarter of 2009, it said.

PGN said in 2008 Transgasindo would spend US$85 million to fix the pipeline.

The Grissik ? Singapore transmission pipeline has been operating since 10 September 2003, and delivers gas from ConocoPhillips? gas field in Grissik, South Sumatra to Batam and Singapore. The 476 Km transmission pipeline is owned and operated by Transgasindo, a joint venture between PGN (60%), and Transasia Pipeline Pvt. Ltd (Transasia) (40%). Transasia is a consortium of oil and gas companies consisting of ConocoPhillips Indonesia Holding Ltd., Petronas International Corporation Ltd., Talisman Transgasindo Ltd., and SPC Indo-Pipeline Co. Ltd.(godang)

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