IN LATE November, Indonesia’s downstream oil and gas regulatory body launched the tender for the exclusive rights to build and operate a 220-kilometer gas transmission pipeline. The pipeline, stretching from the west Java city of Cirebon to Muara Karang, will have a capacity to carry 500-700m cuft/d of gas, according to regulatory authority BPH Migas.
Bidders have until 15 February to register, BPH Migas said, and it expects to name the winning bidder in June 2008. Among those that have expressed interest to bid is state-run PT Perusahaan Gas Negara (PGN). "We are interested to bid," Heri Yusuf, corporate secretary of PGN, is reported to have said. PGN and another government-owned oil and gas company, PT Pertamina, are among those qualified to bid, having the license to transport gas. The Cirebon-Muara Bekasi pipeline is the third section of a gas pipeline across Java, the main market for gas in Indonesia.
PGN had previously lost bids for a 250-km gas pipeline stretching from Gresik in East Java to Semarang in Central Java, and for another pipeline from Semarang to Cirebon. The two projects were awarded to Pertamina and PT Rekayasa Industri, respectively.