South Sumatra-West Java gas pipeline to operate in November

State-owned gas distribution company PGN is optimistic that it will be able to commence the operation of the South Sumatra-West Java (SSWJ) I gas pipeline in November, this year and SSWJ II in March next year.

"We hope we can operate the SSWJ I in this November, and SSWJ II in March next year as promised earlier," PGN president director WMP Simanjuntak said.

Simanjuntak said that the construction of the SSWJ I, which will link Pertamina's gas field in Pagar Dewa, South Sumatra and Cilegon; and the SSWJ II, which will connect Conoco's gas field in Grissik, South Sumatra and Muara Bekasi, West Java was now at its final stage.

Pertamina threatened last week that it would issue a penalty to PGN if the operation of the SSWJ gas pipelines could not be operated as initially scheduled.

Under the existing contract, in the first year Pertamina will supply gas of 15 million cubic feet per day for 12 years, in the second year, the gas supply would be increased to 200 million cubic feet per day and to 250 million cubic per day in the following years

The total gas supply, about 150 million cubic feet per day would be supplied by PGN's customers, and the other 100 million cubic feet per day would go to PLN's Muara Tawar power plant in Bekasi. (godang)