Pertamina Asks Lapindo to Finance Relocation of Gas Pipelines
\nWednesday, 11 October, 2006 | 14:31 WIB<\/p>\n
TEMPO Interactive, Jakarta: PT Pertamina (Persero) is asking that Lapindo Brantas Inc cover all costs for relocating pipelines that channel gas to hundreds of industries in Surabaya, Sidoarjo and Gresik.<\/p>\n
\u201cLapindo should cover the costs,\u201d Sukusen Soemarinda, the Director of Upstream at Pertamina, told Tempo.<\/p>\n
However, according to him, the decision concerning the funding of relocation will be made by the National Team for Handling Mudflows.<\/p>\n
According to Sukusen, Pertamina is still studying pipeline handling around the mudflow area.<\/p>\n
The team of eight persons will study and observe the condition of the pipelines that have to be moved.<\/p>\n
Then, an independent consultant would be appointed.<\/p>\n
\u201cWe are worried that if the level of soil declines, the pipelines will be dangling and they may collapse,\u201d he said.<\/p>\n
The pipelines are now buried under the mud for around one meter.<\/p>\n
Nevertheless, they are still capable of supplying gas properly.<\/p>\n
Widyatmiko Bapang, secretary of PT PGN Tbk, said that he had fully handed over the plan of relocating the pipelines to Pertamina as the owner.<\/p>\n
He has also assured that if the relocation of pipelines was carried out, it would not disturb gas supply.<\/p>\n
The reason for this is that there is a system in the pipeline network that if one pipeline cannot be used, other pipelines still can be utilized.<\/p>\n
Widyatmiko went on to say that relocation will not affect gas prices.<\/p>\n
The reason for this is that gas prices follow contract provisions.<\/p>\n
\u201cLong-term contracts have been made. The distribution fee is already included in the gas price,\u201d he said.<\/p>\n
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