RI to launch its second transnational gas pipeline<\/p>\n
Evi Mariani, The Jakarta Post, Jakarta<\/p>\n
State-owned gas distribution and marketing company PT PGN
\nannounced here on Tuesday the completion of the Sumatra-Singapore
\ngas pipeline project that will allow Indonesia to boost its gas
\nexports to the neighboring country.<\/p>\n
The pipeline is also expected to become an embryo for the
\nplanned gas pipeline network crossing all the member countries of
\nthe Association of Southeast Asian Nations (ASEAN).<\/p>\n
President Megawati Soekarnoputri is scheduled to inaugurate
\nthe startup of the pipeline on Aug. 4 on Batam island, Riau, in a
\nceremony expected to include Singapore Prime Minister Goh Chok
\nTong and ASEAN's energy ministers.<\/p>\n
The new pipeline is the second linking Singapore and the
\nIndonesian territory after the Natuna-Singapore pipeline, which
\nstarted operation in 2000.<\/p>\n
The new pipeline stretches about 470 kilometers from Grissik
\nin South Sumatra to Singapore's Sakra island, passing Sakernan in
\nJambi and Batam. Of the total length, 206 kilometers are built
\noverland and the remaining 264 kilometers are underwater.<\/p>\n
The project's cost reached $420 million, including $88 million
\nin loans from the Asian Development Bank (ADB) and $112 million
\nin loans from the European Investment Bank. The remaining $220
\nmillion is covered by PGN along with some strategic investors.<\/p>\n
The pipeline will carry gas supplies from gas fields in the
\nCorridor Block and South Jambi Block, operated by ConocoPhillips,
\nand the gas fields in Jabung Block operated by Petro China, to
\nPowerGas Ltd, a subsidiary of Singapore Power, in Sakra Island.<\/p>\n
Initially, they will supply 150 million metric standard cubic
\nfeet per day (MMSCFD) of natural gas. The volume will gradually
\nbe increased to more than 350 MMSCFD.<\/p>\n
PowerGas will use the gas supplies for its power plants and
\nindustries.<\/p>\n
Under the deal signed in 2001, the gas supply will generate a
\ntotal revenue of US$9 billion throughout the contract period of
\n20 years.<\/p>\n
Since gas is cheaper than diesel oil, the pipeline will also
\nbring benefits to the industries in Batam as they can now buy
\ncheaper fuel for their operations. State-owned electricity
\ncompany PT PLN can also cut costs by using gas at its power plant
\non the island.<\/p>\n
PGN's president director Washington M.P. Simandjuntak told a
\nmedia briefing that the development of the pipeline started in
\nFebruary 2001 and was completed on schedule.<\/p>\n
The completion of the project is expected to boost PGN's
\nprofile as the state company is preparing to issue bonds worth
\n$500 million and to offer a maximum 49 percent of its shares to
\nthe public in November.<\/p>\n
Following the completion of the pipeline project, Indonesian
\ngas producers can explore the opportunities to send gas to
\nMalaysia or Myanmar.<\/p>\n
Thus, he said, the pipeline could give an impetus for ASEAN
\nmember countries to realize their plans of building the Trans
\nASEAN Gas Pipeline.<\/p>\n
ASEAN has long planned to build a gas pipeline network
\ncrossing the region with most of the gas supplies expected from
\nSumatra and Natuna islands.<\/p>\n
Since 2000, Indonesia supplies Singapore with 325 MMCFD of gas
\nfrom the western part of Natuna through a 656-kilometer
\nunderwater pipeline.<\/p>\n
Aside from sending gas through pipelines, Indonesia also
\nexports gas in the form of liquefied natural gas (LNG) to South
\nKorea, Japan and Taiwan. Indonesia is now the world's largest LNG
\nexporter with a total export of more than 30 million tons per
\nyear.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-to-launch-its-second-transnational-gas-pipeline-1447893297",
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"sponsor": "Okusi Associates",
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