Firm presses plans for Indonesian gas line

Eric Watkins
Senior Correspondent

LOS ANGELES, Dec. 20 -- Indonesia's PT Bakrie & Bros. (B&B) plans to proceed with construction of a 1,115-km pipeline to transport natural gas from East Kalimantan to Central Java despite doubt voiced by officials about the project's feasibility.

B&B Pres. Bobby Gafur Umar said the company will continue with its plan to construct the pipeline despite adverse comments by Indonesian Vice-President Jusuf Kalla.

The Indonesian official earlier said the government might cancel the $1.26 billion project due to a change in domestic gas markets, with Java now likely to get fresh supplies from Cepu gas field in Central Java.

"If Cepu is capable of supplying gas, why take it from far away?" Kalla asked on a visit to Bontang in East Kalimantan. He also said gas output in Kalimantan is showing signs of depletion.

Umar, however, said the pipeline was in line with the program proposed to upstream regulator BP Migas, which awarded BB the tender to build the project (OGJ, Feb. 20, 2006, Newsletter). Construction of the line has been scheduled to start in early 2007, with completion expected in 2009.

B&B has a 25-year contract from the government to operate the transmission pipeline, and it has been seeking cooperation with Mitsui of Japan and Daewoo of South Korea to build the line, which will transport 1 bcfd.

In October, B&B said it would invest $360 million of its funds in the project but would need a loan of $840 million.

Last July, Umar said B&B had not secured supply contracts but had signed agreements with gas buyers in Java, including PT Indonesia Power, PT Rabana Gas Indo Makmur, and PT Bayu Buana Gemilang.

Contact Eric Watkins at

Related Articles

MPLX, MarkWest to merge in $15.8 billion deal

07/13/2015 MPLX LP, a Findlay, Ohio-based master limited partnership (MLP) formed by Marathon Petroleum Corp. in 2012, and Denver-based MarkWest Energy Partne...

EPP completes acquisition of EFS Midstream

07/13/2015 Enterprise Products Partners LP (EPP) said it has completed the purchase of EFS Midstream LLC from Pioneer Natural Resources Co. and Reliance Holdi...

Twist of activists' dogma freshens view of global warming


Fresh perspective on global warming, a topic that needs it, comes from a geologist.

Total unveils development sites for renamed Papua LNG project

07/13/2015 Total SA and its joint venture partners Oil Search Ltd. and InterOil Corp. have announced key infrastructure sites for development of the proposed ...

MARKET WATCH: NYMEX crude oil prices down slightly pending Iran talk results

07/13/2015 US light, sweet crude oil prices settled down slightly July 10 on the New York market, ending a week in which the front-month contract saw its bigg...

PHMSA proposes pipeline accident notification regulations

07/13/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations.

API to issue recommended practice to address pipeline safety

07/13/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Topside modules installed on Clair Ridge platform west of Shetland

07/13/2015 BP PLC reported the installation of quarters and utilities (QU) topside modules on the new platform on Clair field, 75 km west of the Shetland Isla...

CERI: Energy, operational efficiencies possible in Canadian oil, gas

07/13/2015 Measures can be taken by operators in the expanding resource-intensive Canadian oil and gas sector to improve both energy efficiency and operationa...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected