PGN to hold workshop on Kalimantan-Java gas pipeline this week
Monday, February 23 2004 - 04:29 AM WIB
"We expect the Minister of Energy and Mineral Resources, gas contractors and potential buyers to attend the meeting," Simandjuntak said.
Pendawa Consultama Sejati, an independent consulting firm hired by PGN, said in its interim report released last September that the 1,500-kilometer pipeline project was economically feasible.
PGN envisioned the construction of the pipeline, which was planned to be able to channel more than 1 billion cubic feet per day (BCFD) of gas, to start functioning as early as 2008.
Pendawa said in its report that gas demand in Java could increase substantially from around 1 billion cubic feet per day (BCFD) in 2003 to between 2-2.5 BCFD in 2010 and would increase further to at least 3 BCFD in 2025.
The report said that without gas supply from East Kalimantan, Java is predicted to experience shortfall by 2010, and the gap would continue to widen as indigenous gas supply would begin to decline as of 2008.
The report said that gas sent through pipeline from East Kalimantan to Java would cost cheaper than LNG shipped from grassroot plants. (godang)