PGN to boost S.Sumatra-W. Java pipeline transmission capacity

State gas distribution company PGN said it had decided to boost transmission capacity of the proposed South Sumatra to West Java gas pipeline in anticipation of increasing demand in the province.

?The plan is to boost transmission capacity from 750 million standard cubic feet per day (MMCFD) originally to around 1.1 billion cubic feet per day (BCFD),? said PGN director Adil Abas recently.

Adil said PGN had decided to boost the pipeline capacity to anticipate increasing supply from ConocoPhillips and Pertamina?s gas fields in South Sumatra.

Adil said thus far the proposed pipeline had thus far clinched deal to transport 650 MMCFD when it came into realization in 2007; 40 MMCFD from ConocoPhillips?s Corridor Block and 250 MMCFD from Pertamina?s South Sumatra gas block.

Adil said PGN has been in talk with Pertamina and ConocoPhillips to supply additional 400 MMCFD. ?West Java gas market would easily absorb 1.1 BCFD due to increasing demand from industry and electricity generating plants,? said Adil.

PGN is expected to commence construction of the 700-km pipeline next year, with completion expected late 2006 or early 2007. (alex)