Purnomo says E. Kalimantan to Java pipeline project not viable
Thursday, November 9 2006 - 02:13 AM WIB
Purnomo made the remark during consultation with Regional Representatives Assembly (DPD) Wednesday. He said despite the fact that the right to build the pipeline has been granted to PT Bakrie & Brothers, there is no guarantee that the project could be materialized as the Group has to secure gas supply first and make careful calculation whether landed gas price in Java would be competitive.
In the end, however, Purnomo softened his stances by saying that both LNG terminal and pipeline project could go on simultaneously if considered viable.
Meanwhile, Director General of Oil and Gas Luluk Sumiarso said that his office was studying others two methods in transmitting gas from East Kalimantan to Java beside pipeline methode; one is through a floating storage and the other is by LNG receiving terminal.
He said that LNG receiving terminal could be built in Cilegon, Banten or in East Java.
Bakrie & Brothers CEO Bobby Gafur Umar reacted, saying that Purnomo?s remarks only served to confuse the company.
On July 2006, PT Bakrie & Brothers delivered a US$1.26 million performance bond to government as a guarantee that it will go ahead with its plan to build a 1,200 kilometer gas pipeline linking East Kalimantan and Central Java. (godang)