SPP starts Java gas pipeline construction
Thursday, June 30 2011 - 02:34 AM WIB
Gas supplier PT Sumber Petrindo Perkasa (SPP) has started construction of a 140-km pipeline that will transport gas from Pertamina EP-operated Gundih Block in Central Java to Tambak Lorok power plant in Semarang, also in Central Java, that is owned by PT Indonesia Power, a subsidiary of state electricity firm PT PLN (Persero).
According to PLN release, the 20-inch pipeline will start transporting 50 MMCFD of gas to Tambak Lorok in 2013 for 15 years. The pipeline will be built along the railway line.
SPP signed deal to buy Gundih gas from Pertamina EP in 2006. The company then sells the gas to Indonesia Power.
According to the release the pipeline is designed to be able to transport up to 200 MMCFD of gas as Tambak Lorok?s current gas requirement is around 190 MMCFD. The power plant has been burning expensive fuel oil due to lack of gas supply.
The release also said that Gundih block, according to Gaffney, Cline & Associates (GCA) certification, has 662 BCF of gas reserves.(godang)