PLN, Pertagas to build Trans Java gas pipeline

State-run electricity firm PT Perusahaan Listrik Negara (PLN), in cooperation with PT Pertagas, will in 2012 build a 700 km-long gas pipeline across Java that will link the company?s gas sources across the island with its power plants.

The project, to be called Trans Java gas pipeline, is estimated to cost US$784 million, or around Rp 7 trillion.

?All the gas supply will go through it (Trans Java). So if there is a shortage in West Java for instance, supply can come from East Java, or vice versa,? said Suryadi Mardjoeki, PLN?s Oil and Gas Division Head.

Gas flows in the network are estimated to reach 1.200 BBTUD, that would come from Gundih (50 bbtud), Kepondang (116 bbtud), Central Java FSRU (200 bbtud), Kangean (130 bbtud), Kodeco (100 bbtud), Jakarta FSRU (400 bbtud) and Cepu (235 bbtud).

Suryadi said the network would take two years to build at the latest. ?The project?s Head of Agreement with Pertagas has been signed. We expect the pipeline to be ready by 2014 or even 2013, about the same time with the Central Java FSRU project.?

The pipeline will be constructed by Pertagas, a unit of state-run oil and gas company PT Pertamina.

PLN and Pertagas are open to the possibility of other parties using the gas distributed by through the network. For instance to supply gas stations. ?If there are other off takers, we?d welcome them. Of course with the right calculations. The off taker will make the payment to Pertagas, which will in turn reduce our commitment to Pertagas,? he explained.

Suryadi said this project was the best available solution for the company to deal with gas supply shortages suffered by PLN?s power plants throughout Java. (godang)