Indonesia to bid 1,219 km pipeline in January

Eric Watkins
Senior Correspondent

LOS ANGELES, Dec. 29 -- The Indonesian government will begin the tendering process in January 2006 for the construction of a 1,219 km natural gas pipeline between Bontang in East Kalimantan and Semarang in Central Java.

The pipeline, estimated to cost $1.7 billion, will carry 700-1,000 MMscfd of natural gas.

Tender documents for the 25-year special rights can be obtained during Jan. 16-27, and bids are to be submitted during Apr. 24-28.

The Downstream Oil and Gas Regulatory Agency (BPH Migas), in charge of the tender for the pipeline, expects to announce the winner in May 2006.

The project is expected to be on stream by 2009.

Contact Eric Watkins at hippalus@yahoo.com.

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