Sumatra-Java gas pipeline to operate on schedule

The state owned gas distribution company Perusahaan Gas Negara (PGN) is upbeat that the operation of the South Sumatra-West Java gas pipeline can be commenced in the fourth quarter of 2006, Kompas reported on Tuesday.

PGN's president director WMP Simanjuntak said in Jakarta on Monday that he was optimistic that the inter-island gas pipeline which would transmit gas from the Corridor gas block operated by Conocco Phillips in Grissik, South Sumatra to PGN's gas receiving termival in Karawang, West Java, would be able to operate on schedule although there was a delay in the construction of the phase I of the project.

Although the first stage of the project would be completed only in March next year, or four months behind the initial schedule, the commercial operation of the pipeline would be operated according to the initial plan or even ahead of the initial schedules, Simanjuntak said.

"The construction of the second phase of the project would be sped up and we hope it could be completed in October, next year or four months ahead of the schedule," he said.

The volume of gas to be transmitted through the new gas pipeline will reach about 170 million cubic feet per day during early years of its operation . The transmitting capacity will be gradually increased to 400 million cubic feet per day a year, or equivalent to 2.7 million kilo liters of LNG a year. (*)