Relocation of Kodeco?s gas pipelines from Tanjung Perak port delayed

The relocation of Kodeco Energy?s gas pipelines from the Tanjung Perak port in East Java will be delayed for about 1.5-2 years until the end of 2011 as the Korean oil and gas company insisted it would not be able to meet the June 1, 2010 deadline, Metrotvnews. Com reported on Tuesday.

Sunaryo, the Director General of Sea Transportation at the Ministry of Transportation, said in Surabaya on Monday that the government had agreed with the Korean company?s proposal to delay the relocation of the 60-km undersea pipelines.

?We understand Kodeco?s problem. The relocation will not only cost the company a lot of money but will also take time,? he said.

In order to prevent ships from hitting Kodeco's pipeline, the port will install signs warning of the existence of the pipeline.

Meanwhile, Ahmad Baroto, General Manager of state owned port management company PT Pelabuhan Indonesia (Pelindo) III, said in Surabaya on Monday that he had anticipated the possible delay of the gas pipeline relocation.

?We have even given Kodeco the time to delay the relocation until 2012,? he added.

The 60-km pipelines with a diameter of 16 inches were laid at a 9.5-meter depth near the Tanjung Perak port?s Buoy 8. Since the operation of the pipeline in July last year, only a ship with a capacity of between 1,800 and 2,000 containers could pass the Buoy 8 route. As the consequence, ships with a capacity of more than 2,000 containers should pass through other route, he said.

?The existence of the pipeline has hampered export-import activity from and to the port,? he said.

Kodeco uses the pipeline to transmit gas from West Madura PSC and Poleng TAC, both operated by Kodeco, to onshore processing facility in industrial city of Gresik. Kodeco sells its gas to state-owned gas distribution firm PGN and fertilizer maker PT Petrokimia Gresik. (*)