THE Indonesian government is to reconsider a plan to build a $1.26-billion gas pipeline linking Borneo and Java islands, which may cut Indonesia’s export of the fuel, President Susilo Bambang Yudhoyono said recently. Java’s Cepu field, an area under development by ExxonMobil and state oil company PT Pertamina, may only have enough gas reserves to supply customers in Java, Mr Yudhoyono said.
THE Indonesian government is to reconsider a plan to build a $1.26-billion gas pipeline linking Borneo and Java islands, which may cut Indonesia's export of the fuel, President Susilo Bambang Yudhoyono said recently. Java's Cepu field, an area under development by ExxonMobil and state oil company PT Pertamina, may only have enough gas reserves to supply customers in Java, Mr Yudhoyono said in a speech broadcast on ElShinta radio station.
In July, the government awarded the tender to build the 1,115-km pipeline to PT Bakrie & Brothers, reported to be partly-owned by a Cabinet minister's family. Scrapping the pipeline may allow Indonesia to extend the gas-export contracts to Asian buyers that are set to expire in 2010, although it would adversely affect supplies to Bontang, the world's largest LNG export plant.
The Cepu field, which lies across Central and East Java provinces, has an estimated 1.7 trillion cuft of gas reserves. The proposed pipeline between Borneo's East Kalimantan province to Central Java was planned as being able to transport up to 1bn cuft/d.