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T Perusahaan Gas Negara (PGN) and PT Bakrie and Brothers, will begin this month the construction of a 200-kilometer submarine gas pipeline to transmit gas from the Kepodang field in the Muria gas block in Jepara to the Tambak Lorok combined-cycle power plant (PLTGU) in Semarang, Central Java.

The construction of the undersea pipeline would cost about Rp 2.75 trillion (US$240 million), PT Bakrie Indo Infrastructure chief operating officer Erlangga said in Semarang, recently.

The pipeline is the first stage of the national pipeline project, which will be built to transmit gas from Kalimantan to Java. The next stage is to build a pipeline from Cirebon (West Java) to Tambak Lorok (Central Java), and Tambak Lorok to Gresik (East Java) in a bid to connect the network between East Java and West Java

Erlangga expect the pipeline will be ready to deliver gas to the power plant beginning in August 2015, with a capacity of between 116 million standard cubic feet per day (mmscfd) and 120 mmscfd.

The Kepodang gas-transmission pipeline would be installed at a depth of 50-70 meters in the Java Sea, said Erlangga. '€œI guarantee that the pipeline will not affect shipping,'€ said Erlangga after he met Central Java Governor Ganjar Pranowo.

The construction of the undersea gas pipeline, however, had been hampered by licensing, Erlangga told reporters, adding that the pipeline construction required 37 permits. Of those permits 80 percent have been issued.

'€œWe have talked with Pak Ganjar to ask his support, so that we can get the outstanding permits as soon as possible. It is expected that the pipeline construction can be accomplished on target,'€ said Erlangga.

The head of the Kepodang Project with Petronas Carigali Indonesia, Hendrayana, said that the company had built two gas rigs in the field which would be linked to the undersea gas pipeline.

 '€œWe have been constructing the rigs since December last year and they are 60 percent completed. The offshore gas drilling activities began four days ago. We expect that gas production can be started by the end of 2014, and the gas can be distributed to Tambak Lorok in August 2015,'€ said Hendrayana.

Governor Ganjar has given his full support for the construction of the undersea gas pipeline because it is in line with the Central Java administration'€™s plan to achieve self-sufficiency in energy and food.

'€œGas production provides great benefits to Central Java. If I could do it over again, I would prefer to choose natural gas rather than coal for the Batang power plant [PLTU],'€ he said.

He hoped that the government would use gas for new power plants to be built in the country in the future. (alz)