Purnomo insists to go ahead with Kalimantan-Java gas pipeline project
Friday, November 18 2005 - 01:42 AM WIB
Speaking to reporters on Thursday, Purnomo said that the 1,277 km gas pipeline project should go ahead and that the lack of gas supply could be coped with by taking the advantages of gas production from other provinces in Kalimantan.
The Minister also said that the study of the team was not comprehensive so that it could not be used as the basis for the construction of the project. “I have received the report from the team but I've returned it back and asked the team to make a more comprehensive report,” he added.
According to him, the team only based their study on the gas reserves found in East Kalimantan, while the gas resource outside the province is not included in their survey.
According to the study of the team which comprises of senior officials from the Ministry of Energy and Mineral Resources, BP Migas, BPH Migas and the office of Coordinating Minister of Economy, the gas pipeline project would not be feasible due to the lack of gas reserves in the province.
The team said that the proven gas reserves of about 4.3 trillion cubic feet found in East Kalimantan is only enough to meet the gas needs in Java for 10 years. With such short lifespan, the gas pipeline project will be too costly, the team concluded.
In addition, the team said that the project could result in the closure of Bontang LNG plant due to the lack of gas supply because all the gas resource in East Kalimantan would be used to supply the gas pipeline once the project begins its operation.
Purnomo, however, said that there would be no problem with the government’s gas export commitment because if the Bontang LNG could not meet its export commitment due to the lack of gas supply, the export contracts could be diverted to other LNG producers such as the Tangguh LNG plant in Papua.
Purnomo’s statement indicated a swift change in his position in the massive gas pipeline project. He earlier said that the project was not the government’s priority. “The change in Purnomo’s position in the gas pipeline project indicates that he is under pressure from the more power full individual within the government,” said analyst Ramses Hutapea. (dino)