Megawati to launch major oil, gas projects<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
President Megawati Soekarnoputri is set to launch 14 oil and
\ngas projects worth US$1.9 billion, signaling an improved
\ninvestment climate in the sector.<\/p>\n
Four of the projects have been completed, while the other 10
\nwill start development soon.<\/p>\n
The projects consist of 12 projects worth $940 million owned
\nby state oil and gas firm Pertamina, one worth $485 million owned
\nby state gas distribution firm PT Perusahaan Gas Nasional (PGN)
\nand one worth $551 million owned by oil and gas upstream
\nauthority BP Migas and French oil and gas company Total E&P
\nIndonesie.<\/p>\n
"The projects are a milestone to increase investment in the
\noil and gas sector. They are expected to improve investor
\nconfidence that the investment climate in the sector is still
\ngood," Minister of Energy and Mineral Resources Purnomo
\nYusgiantoro told a media briefing on Wednesday.<\/p>\n
Purnomo added the projects could eventually boost the
\ncountry's growth by "increasing revenue, boosting the economy in
\nthe regions and producing environmentally friendly oil and gas."<\/p>\n
Megawati is scheduled to launch the projects at the Balongan
\noil refinery in Indramayu, West Java, on Sept. 14.<\/p>\n
Four projects that have been completed are: Cemara mini
\nliquefied petroleum gas (LPG) refinery, Indramayu; East Limau LPG
\nmini-refinery, South Sumatra; the CO2 removal facility in Subang,
\nWest Java; and the compression facility of the Tunu gas fields in
\nEast Kalimantan.<\/p>\n
The first three are owned by Pertamina, while the other is a
\njoint project of BP Migas and Total E&P Indonesie.<\/p>\n
Pertamina director for downstream oil and gas business Muchsin
\nBahar said the LPG projects were meant to reduce Pertamina's
\ndependence on LPG imports.<\/p>\n
Muchsin said the projects were to anticipate increasing
\ndemands for LPG in the future.<\/p>\n
LPG is widely used by middle- and high-income households
\nnationwide, with consumption reaching about one million metric
\ntons per year. In Jakarta alone, some 200,000 households use LPG.<\/p>\n
The ten projects, whose development will be launched by the
\nPresident, include Pertamina's Plaju liquefied natural gas (LNG)
\nplant in South Sumatra, Pertamina's unleaded gasoline plant at
\nthe Balongan refinery, PGN's gas pipeline transmission from
\nPagardewa, South Sumatra to Cilegon, West Java, and the
\nprocurement of two oil tankers owned by Pertamina. The 260,000
\ndeadweight ton (dwt) tankers, categorized as very large crude
\ncarriers (VLCCs), each have a capacity of two million barrels of
\noil.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/megawati-to-launch-major-oil-gas-projects-1447893297",
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"sponsor": "Okusi Associates",
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