Bimantara to build 60km pipeline
Bimantara to build 60km pipeline
JAKARTA (JP): Bimantara Group, a holding company controlled by Bambang Trihatmodjo, will build a 60-kilometer pipeline from the Kambing and Kemiri islands, north of the Madura sea, to Porong in East Java, an official said yesterday.
An assistant to the regional secretary of the East Java Governor's Office, Hamzens, was quoted by Antara as saying that Bimantara applied to the East Java administration for local permits regarding location and land acquisition for the pipeline project.
He gave no details on the investment value of the project or when the construction will be started.
"The new pipeline will be connected with the sub-marine section of the 400-km Pagerungan pipeline which has been operating since 1993 to supply gas to state gas company PGN, state petrochemical company PT Petrokimia Gresik and a power plant in Gresik," Hamzens said in Surabaya, East Java.
The 400-km gas pipeline from Madura to Gresik was also built by the Bimantara Group.
He said the gas from Kambing and Kemiri islands, which was discovered by the state oil company Pertamina's foreign contractors, including Mobil Oil of the United states, will be distributed to a new private power project at Grati in Pasuruan, East Java.
Hamzens said the US$520-million power plant will be built by the Pasuruan Power Company, a company controlled by tycoon Ibrahim Risjad, in cooperation with Enron and Price Holding of the United states. The project is scheduled to come on stream in 1999 with a generation capacity of 500 megawatts. Its construction will start in October.
Director of Private Electricity of the Ministry of Mines and Energy Moeljadi Oetji said recently that the government has approved the sale price for electricity from the Grati power plant. The price will be 5.88 U.S. cents per kilowatt hour.
The Grati power plant will be the third private power plant in East Java. Two coal-fired power plants with a combined capacity of 1,200 megawatts at Paiton are now being built by two consortia led respectively by PT Batu Hitam Perkasa and Bimantara Group.(04)