Indonesia's PGN to Start Construction of Undersea Gas Pipeline

PT Perusahaan Gas Negara (PGN) and PT Bakrie and Brothers will start this month the construction of undersea pipeline to transmit gas from the Kepodang field in the Muria gas block in Jepara to the Tambak Lorok combined-cycle power plant (PLTGU) in Semarang, Central Java, reports Jakarta Post.

The pipeline, with expected capacity of between 116 million standard cubic feet per day (mmscfd) and 120 mmscfd, is expected to cost $420 million and would be ready by August 2015.

According to Jakarta Post, the pipeline is the first stage of the national pipeline project, which will be built to transmit gas from Kalimantan to Java.

The next stage is to build a pipeline from Cirebon (West Java) to Tambak Lorok (Central Java), and Tambak Lorok to Gresik (East Java) in a bid to connect the network between East Java and West Java.

Central Java Governor Ganjar Pranowo has given his full support for the construction of the undersea gas pipeline because it is in line with the Central Java administration’s plan to achieve self-sufficiency in energy and food, reports Jakarta Post.

“Gas production provides great benefits to Central Java. If I could do it over again, I would prefer to choose natural gas rather than coal for the Batang power plant [PLTU],” he said. 

He hoped that the government would use gas for new power plants to be built in the country in the future. 

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