PGN starts operating South Sumatra-West Java pipeline
Sunday, March 11 2007 - 06:20 AM WIB
A ceremony was held on Sunday in Pagar Dewa, Muara Enim regency, South Sumatra to mark the process of filling the South Sumatra-West Java II (SSWJ-II) pipeline with gas from gas fields owned by state owned oil and gas company PT Pertamina in the area.
?In the beginning, the gas is delivered to the pipeline at the rate of 30 million cubic feet per day (MMCFD). The volume will be gradually increased to 250 MMCFD in 2008. Commercialization of the gas is expected to start in April, this year,? PGN?s president Soetikno said.
The 377 kilometer transmission pipeline (272 km on land and 105 km underwater), stretches from Pagar Dewa to Bojonegara in Banten, passing Labuhan Maringgai and Sunda Strait.
The operation of the pipeline was initially scheduled several months ago, but was delayed due to bad weather. The delay resulted in a significant drop in PGN?s shares on the Jakarta Stock Exchange.
South Sumatra?s vice governor Wahyudin NS welcome the operation of the pipeline, saying it would bring a multiplier effect as well as additional revenue to the province.
State Minister of State Enterprises Sugiharto praised the cooperation between PGN and Pertamina to realize the project, saying state owned companies have proved to be able to support the country?s economic development.
He called on PGN to complete the construction of the SSWJ-I pipeline on time that more gas will be delivered from South Sumatra to western part of Java.
The SSWJ-1 pipeline stretching from Grissik, South Sumatra to Muara Bekasi, West Java will deliver gas from American oil and gas company ConocoPhilips? fields in South Sumatra to West Java at around 400 MMCFD. According to Soetikno, delivery gas through the SSWJ-I pipeline will start in the second semester of the year.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro underlined the government?s commitment to increasing the use of gas in the country as part of the efforts to cut reliance on oil-based fuel.
He said today, Indonesia exports 55 percent of its gas and uses the remaining 45 percent at home. In 2008, the domestic consumption of gas will increase to 55 percent of the national output, while export portion will decrease to 45 percent.
Pertamina?s director of exploration and production Kun Kurnely said Pertamina could produce up to 500 MMCFD at its fields around Pagar Dewa. A half of the output is allocated for PGN and the rest for industries in South Sumatra, including state owned electricity firm PT PLN and state owned fertilizer firm PT Pusri. (Godang)