Eric Watkins
Senior Correspondent
LOS ANGELES, Aug. 24 -- The Indonesian government plans to build a 1,200 km pipeline from natural gas fields in East Kalimantan to Java at a cost of $1.2 billion.
The decision was made in a meeting between Vice-President Jusuf Kalla, Energy and Mineral Resources Minister Purnomo Yusgiantoro, Chief of the Oil and Gas Regulatory Body (BP Migas) Tubagus Haryono, and President Director of State Gas Co. (PGN) WMP Simanjutak.
Haryono said the meeting focused on how to encourage people in Java to switch from fuel oil to gas. To assist that change, he said, the government would build a natural gas receiving terminal in Java, along with a pipeline from fields in Kalimantan.
He said the government would soon issue a tender for special rights to carry gas through a pipeline linking East Kalimantan to Java. He also said BP Migas had undertaken a feasibility study of the gas pipeline, which is scheduled for completion in 2009.
On completion, the pipeline will carry 1 bcfd of gas from the fields operated by Unocal Indonesia and Total SA, Haryono said.
Contact Eric Watkins at [email protected].
