PGN to expand pipeline network to anticipate LNG terminal operation

State gas distributor PT Perusahaan Gas Negara (PGN) will expand its gas distribution pipeline network in 2011 to boost the reliability of its network, a company official said on Wednesday.

Daniel Hamonangan, PGN Engineering and Development Manager, said the new pipelines was an anticipation of a surge in the supply of gas from LNG receiving terminals.

Pertamina and PGN are planning to develop an LNG terminal capable to handling 3 million tonnes of LNG per annum or about 500MMCFD with operations expected late 2011 or early 2012.

The expansion of the pipeline project is expected to be completed in 2015, he said.

The new pipelines are the Ring Line 1 connecting KP.5 in Muara Bekasi and Martadinata in Tanjung Priok covering a length of 30 km; Ring Line 2 between Bitung in Banten and Cimanggis in Depok covering a length of 59 km; and Ring Line 3 between Bitung and Jembatan Tiga in North Jakarta with a length of 35 km, and between Ciujung and Cimanggis with a length of 60 km.

The project is estimated to cost US$500 million for engineering, procurement and construction (EPC), Daniel said. (bernard)