Tri Listiyarini & Retno Ayuningtyas
Pertamina Gas, a subsidiary of state oil and gas company Pertamina, will invest $320 million to build gas infrastructure outside of Java, officials have said.
“Our commitment is not only to develop infrastructure in Java, but also outside of Java,” Pertagas’s president director, Gunung Sardjono Hadi, said on Wednesday. “We have a number of infrastructure projects that we are working on.”
Gunung also unveiled the company’s blueprint to build a TransJava pipe project, which would cost more than $1 billion and help meet growing demand in the center of the country’s commercial activities.
Projects outside of Java are primarily classified into two areas: gas pipes and liquefied natural gas receiving terminals. These pipe networks and terminals are eventually connected to the infrastructure in Java.
The bulk of the investment outside of Java, according to Gunung, will be for the construction of an LNG receiving terminal in eastern Indonesia. The project is estimated to cost $300 million, but no other details were revealed.
Plans are also under way for a pipe project that would connect two areas in Kalimantan — Simenggaris and Bunyu — at a cost of about $20 million.
And in western Indonesia, Pertagas plans to build a gas pipe network connecting South Lhok Sukon and Belawan, on Sumatra.
Gunung said the development of the network would be carried out concurrently with Pertamina’s project to convert the Arun LNG refinery into an LNG receiving terminal by 2014.
Indonesia is stepping up efforts to improve its gas infrastructure as it seek to reduce dependency on oil fuel. Poor infrastructure has prevented the manufacturing sector from getting sufficient gas supplies.