South Sumatra governor defends pipeline project<\/p>\n
JAKARTA (JP): The South Sumatra provincial administration has
\ncome out in support of continuing the operation of a disputed gas
\npipeline project even though President B.J. Habibie backed out of
\nits dedication last week.<\/p>\n
South Sumatra governor Rosihan Arsyad said in the provincial
\ncapital of Palembang on Saturday that the operation of the
\npipelines would contribute significant revenue to the province.<\/p>\n
He expected state gas distribution company PT PGN and Canada's
\nGulf Resources to continue operating their gas pipelines because
\nof their potential.<\/p>\n
\"Operation of the gas pipeline will bring revenue of about
\nUS$750,000 per day (to the companies), some of which will be used
\nfor the development of the province,\" Rosihan was quoted by
\nAntara as saying.<\/p>\n
PGN has built a 534-kilometer pipeline to transport natural
\ngas from Gulf's gas fields in Grissik, Musi Banyuasin, South
\nSumatra, to the Duri oil field in Riau owned by PT Caltex Pacific
\nIndonesia.<\/p>\n
The gas is used by Caltex to replace crude oil pumped out of
\nthe Duri oil fields. Gulf receives 50,000 barrels per day (bpd)
\nof crude oil from Caltex in return.<\/p>\n
PGN started operating the pipeline in Oct. 1 and Habibie was
\nscheduled to dedicate the operation on Thursday.<\/p>\n
Habibie refused to dedicate the pipeline, reportedly out of
\nconcern over a land dispute involving Gulf and the oil palm and
\ncoconut plantation PT Sentosa Mulya Bahagia.<\/p>\n
Sentosa Mulya accuses Gulf of appropriating plots without
\nproviding compensation in its plantation area to develop its gas
\nterminal and gas pipelines linking the gas terminal to its gas
\nfields in Grissik.<\/p>\n
The Musibanyuasin district court has issued a provisional
\njudgment ordering Gulf to halt operations pending the court's
\nfinal decision on the case.<\/p>\n
Rosihan said Gulf should be allowed to continue operations
\nuntil the court made a final decision because its operation did
\naffect Sentosa Mulya's plantation activities.<\/p>\n
\"Furthermore, the high court may overrule the decision of the
\ndistrict courthouse,\" Rosihan said.<\/p>\n
He said the provincial administration had sent a letter to the
\ncentral administration to explain that Gulf's operations did not
\npose a security and safety disruption at the plantation. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/south-sumatra-governor-defends-pipeline-project-1447893297",
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