BANDUNG, July 1 (EngineeringDaily) --Pertagas, one of the largest gas companies in Indonesia, is preparing to build a gas pipeline from Semarang in central Java to Gresik on the east coast. This 265 km-length pipeline project will meet the needs of industries in East Java and Central Java. Pertagas, also known as PT Pertamina Gas, started the construction of the Gresik-Semarang pipeline segment at the end of June.

"With an 18-month construction period, the project is expected to become operational in 2016," said Director of Pertagas, Hendra Jaya. He further explained that the project is worth USD 500 million and will supply as much as 100 MMSCFD of gas from the Cepu gas field through a 24 inch diameter pipeline.

"Unfortunately, Cepu will not come online until 2018. In the meantime, the allocation of gas will be obtained from other oil and gas fields in East Java," Director Jaya said. Pertagas is also ready to build and strengthen the infrastructure of the gas pipeline, both in Java and Sumatra, to improve its gas supply throughout the country.
In addition to the Gresik-Semarang pipeline, Pertagas is also currently building 6 other gas pipelines throughout Indonesia. "There has been a total of 1,000 km of additional new pipeline built this year," said Jaya.

The company also plans to develop the gas infrastructure in Bali in order to supply liquefied natural gas (LNG) to the island. Pertagas is preparing to supply LNG to power plants in Bali by 2015.

Director Jaya expanded on the plans to increase their supply to Bali. "The gas supply for Bali will come from an existing LNG plant in Bontang, Borneo. We plan to create scenarios for both storage and regasification to reach the power plants run by Indonesia Power," he said.

By Isamail Al Anshori