Gas pipeline bids to end in November<\/p>\n
Leony Aurora, The Jakarta Post\/Jakarta<\/p>\n
The government expects the bidding for two gas pipeline projects
\nin Java to be completed in November, with the construction to
\nstart early next year, a top official says.<\/p>\n
Chairman of the Oil and Gas Downstream Regulatory Agency (BPH
\nMigas) Tubagus Haryono said on Friday that several companies,
\nincluding state oil and gas firm PT Pertamina and state gas
\ndistributor PT Perusahaan Gas Negara (PGN), would be ready to
\ntake part in the bidding process.<\/p>\n
\"We will shortlist the bidders, probably three of them,\" he
\nsaid. \"We expect to announce the winner six months from now, in
\nNovember. While construction will start soon after the winner is
\nannounced.\"<\/p>\n
The government will open a bid for two pipeline projects,
\nnamely the 390-kilometer-long pipeline from Gresik in East Java
\nto Semarang in Central Java and another 290-kilometer-long
\npipeline from Semarang to Cirebon in West Java, later this month.<\/p>\n
Each of the pipelines will carry about 350 million standard
\ncubic feet of gas per day. Combined, the projects are estimated
\nto cost up to Rp 6 trillion (US$631.25 million).<\/p>\n
The pipelines are expected to channel gas to fulfill demand in
\nJava, where gas is used by industries as well as households, from
\nnewly developed gas fields operated by Santos in offshore Madura,
\nan island off East Java, ExxonMobil in Madura, and Amerada Hess
\nin Ujung Pangkah in the province.<\/p>\n
\"After these pipelines, we'll probable tender out the segments
\nin Sumatra,\" said Tubagus.<\/p>\n
\"Java is the most important (to cover), as it has the most
\nfuel consumers,\" he added. \"If fuel in Java could be replaced by
\ngas, we would achieve at least some energy diversification.\"<\/p>\n
Heavily populated islands of Java and Bali consume some 62
\npercent of the country's domestic fuel consumption, while Sumatra
\nuses 20 percent and the rest of the archipelago the other 18
\npercent.<\/p>\n
With a reserve of 188.34 trillion standard cubic feet,
\nIndonesia is known to have one of the most extensive gas reserves
\nin the world. However, lack of infrastructure has hampered the
\nuse of gas in households and small industries.<\/p>\n
The government plans to gradually cut the use of oil from 60
\npercent of the country's total energy use to 30 percent by 2025.
\nThe government plans for gas and coal to make up 60 percent of
\nenergy use in the future while other energy the remaining 10
\npercent.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gas-pipeline-bids-to-end-in-november-1447893297",
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"sponsor": "Okusi Associates",
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