PT Pertamina subsidiary Pertamina Gas plans to build a new 140 km pipeline network to connect Cirebon and Muara Karang in Jakarta, Indonesia, according to The Jakarta Post.
The pipeline is intended to help cope with the gas shortfall problems in the province.
Pertamina Gas Director for Planning, Development and Sales Harjana Kodiyat reportedly said the planned pipeline network would be divided into two segments – a 90 km pipeline from Cirebon to Kandanghaur and a 50 km pipeline from Tegal Gede to Muara Tawar. Gas for the pipeline would be sourced from a LNG receiving terminal in Central Java to be constructed by Pertamina.
Mr Kodiyat said “Currently we’re still conducting a feasibility study to observe the planned network’s technical and commercial aspects. We expect the study to be completed next year, while the engineering, procurement and construction processes are estimated to kick off in 2013.”
Mr Kodiyat added that the company would need to invest around $US200 million to build the pipeline, and that the funds would come from Pertamina Gas’ internal budget and loans from financial institutions.
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