S. Sumatra-W. Java phase II pipeline will start operation in Nov 2006
Thursday, June 16 2005 - 05:36 AM WIB
?Gas will start flowing at an initial rate of 50 million cubic feet per day (MMSCFD). The rate will be ramped up to about 170 MMSCFD in 2007, 220 MMSCFD in 2008, and reach the plateau level of 400 MMSCFD in 2009,? PGN president WMP Simanjuntak told reporters in a contract signing ceremony between PGN and PT KHI Pipe Industries.
PGN has awarded an Rp 1.22 trillion contract for KHI-led consortium to supply a total of 272 kilometers of coated pipes for the onshore part of PGN?s SSWJ II pipeline project.
KHI, a subsidiary of state-owned steel maker PT Kratatau Steel, together with PT Indal Steel Pipe, PT Bumi Kaya Steel Industries, and PT Steel Pipe Industry of Indonesia, has formed a consortium for the project.
According to Simanjuntak, the pipes to be supplied by the KHI-led consortium will link Pagardewa in South Sumatra to Labuhan Maringgai in Lampung. The pipeline accounts for about 40 percent of the total length of the SSWJ II pipeline project.
Simanjuntak also said PGN had recently opened a tender for the contract to supply pipes for the offshore part (linking Labuhan Maringgai ? Muara Bekasi) of the SSWJ II pipeline project and the winner would be announced in July.
PGN is constructing pipelines connecting Sumatra and Java islands in two phases in order to support higher demand for natural gas in West Java.
The first phase project, called SSWJ I, is aimed to transport state-owned oil and gas firm PT Pertamina?s gas from Pagardewa to PGN?s industrial customers in the western part of West Java. Meanwhile, the second phase project, called SSWJ II, is to supply PGN?s industrial markets in the northern part of West Java with natural gas from Corridor block in South Sumatra.
The first gas supply via SSWJ I is scheduled to start in mid-2006 with an outflow of 250 MMSCFD after the third year. (godang)