Pertamina, PGN plan gas pipeline<\/p>\n
JAKARTA (JP): State-owned oil and gas company Pertamina and state
\ngas distribution company PT Perusahaan Gas Negara (PGN) signed a
\npreliminary agreement on Thursday for the supply of gas from
\nSouth Sumatra to the industrial area of West Java.<\/p>\n
\"Under the so-called head of agreement, Pertamina will start
\ndeveloping its gas fields in Prabumulih, South Sumatra, and the
\nfirst delivery of gas is expected in the first quarter of 2005,\"
\nPertamina president Baihaki Hakim told reporters following the
\nsigning.<\/p>\n
He said that Pertamina had discovered a gas reserve of 3.8
\ntrillion cubic feet (TCF) in its fields in Prabumulih.<\/p>\n
The fields have the potential to produce 50 million cubic feet
\nper day (mmcfd) of gas for 20 years, starting from 2005, he said.<\/p>\n
\"The gas sale agreement aims to anticipate the increasing
\ndemand for gas in West Java,\" Baihaki said.<\/p>\n
Under the agreement, PGN will develop a 640-kilometer gas
\npipeline to stream gas from South Sumatra to West Java.<\/p>\n
PGN broached the idea of building the pipeline several years
\nago in view of the potential gas market in West Java and the
\nabundant gas reserves in South Sumatra.<\/p>\n
Initially, the Japanese government showed interest in funding
\nthe project, but it later canceled the loan following the
\ncountry's prolonged economic crisis.<\/p>\n
PGN recently said European financiers were interested in
\nfinancing the project.<\/p>\n
Baihaki said that Pertamina would invest US$500 million to
\ndevelop its 22 gas fields in Prabumulih for the project.<\/p>\n
Baihaki said that Pertamina would continue exploration
\nprojects in Prabumulih and other parts of South Sumatra to
\nincrease its reserves in the province to 5 TCF to anticipate
\nexpectations of high demand in West Java and South Sumatra over
\nthe next five to 10 years.(11)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-pgn-plan-gas-pipeline-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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