JAKARTA (Yosefardi) – BPH Migas, the Downstream Oil and Gas Regulatory Body, urged PT Bakrie&Brothers Tbk (BNBR) to immediately work on Kalimantan-Java pipe network project, connecting Kepodang and Semarang.
The construction of pipe, BPH Migas said, can be started without awaiting the revision on toll fee. The construction is hoped to complete by end 2014.
PLN is the buyer of gas from Kepodang, at price of US$4.61/mmbtu for 12 years period. After the construction of pipe, BPH Migas explained, Bakrie can propose the revision on toll fee set at US$0.814 per mmscfd on the tender.
BNBR has processed the secure 62 permits for this project with 200 kilometers length and capacity of 180-200 mmscfd. 116 mmscfd of gas will be flown from Kepodang field operated by Petronas Carigali.