Govt to speed up gas network construction<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The government will provide a number of fiscal and non-fiscal
\nsupports for the business community to speed up the construction
\nof an integrated gas transmission network that will link Java,
\nSumatra and Kalimantan.<\/p>\n
The decision was taken to help the nation in its efforts to
\nwean itself off dependence on oil by maximizing the use of
\nnatural gas, which is available in abundance.<\/p>\n
After meeting Vice President Jusuf Kalla on Thursday, Minister
\nof Energy and Mineral Resources Purnomo Yusgiantoro said that
\nsupports would include the exemption of import tax for materials
\nand capital goods needed for gas network construction.<\/p>\n
\"During the meeting, we decided to take necessary steps to
\nhelp the speed up the project construction so that we can
\nimmediately take advantage of this energy source,\" said Purnomo.<\/p>\n
The tax exemption policy was currently being looked at by the
\nMinistry of Finance.<\/p>\n
The government has initiated the so-called Integrated
\nIndonesian Gas Pipeline (IIGP) projects, which will distribute
\ngas from production points in East Kalimantan, South Sumatra,
\nRiau and East Java to industrial and household consumers in Java
\nand Sumatra.<\/p>\n
The projects, which are estimated to cost some US$3 billion
\nwith a combined transmission length of over 2,000 kilometers, are
\nexpected to be completed by 2009.<\/p>\n
The projects will all be led by state gas utility firm PT
\nPerusahaan Gas Negara (PGN).<\/p>\n
Purnomo said aside from fiscal support, the government would
\nalso provide non-fiscal supports in the form of speeding up the
\nconstruction approvals and tender process for investors willing
\nto team up with PGN.<\/p>\n
For the Gresik-Semarang transmission section as well as the
\nSemarang-Cirebon section, the government-sponsored oil and gas
\nregulator BP Migas has pledged to wrap up the tender within three
\nor four months.<\/p>\n
The 480-kilometer of projects are expected to be completed in
\n2008.<\/p>\n
The government will also offer gas transmission projects to
\ninvestors in collaboration with PGN that will link the Duri field
\nin Riau with consumers in Medan, North Sumatra, which is
\nscheduled to be completed in 2008.<\/p>\n
At present, PGN is still constructing gas transmissions that
\nwill link gas producers in South Sumatra with buyers in Banten
\nand West Java.<\/p>\n
The transmission network, slated for completion in 2007, will
\nconnect the producers with the planned liquefied natural gas
\n(LNG) terminal belonging to state oil and gas firm PT Pertamina
\nin Cilegon, Banten, and the Muara Tawar power plant run by state
\npower firm PT Perusahaan Listrik Negara (PLN) in Bekasi, West
\nJava.<\/p>\n
Tubagus Haryono, head of downstream regulator at BP Migas,
\nsaid the government would also offer 1,200-kilometers of
\nunderwater gas transmission projects worth some Rp 1 billion that
\nwould link gas producers in East Kalimantan with consumers in
\nJava.<\/p>\n
Tubagus said that aside from fiscal support, the government
\nwill also ask other institutions such as the National Land Agency
\nand the Ministry of Home Affairs to help the private sector in
\nthe process of land acquisition for the projects.<\/p>\n
The government has recently issued a presidential regulation
\nfor land acquisition for developments that are in the public
\ninterest.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-speed-up-gas-network-construction-1447893297",
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"sponsor": "Okusi Associates",
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