PGN: Kepodang Gas Field to be Completed in 2015

TEMPO.CO, Jakarta - State-owned gas company Perusahaan Gas Negara (PGN) says it is  committed to complete the first phase of the Kalimantan-Java (Kalija) pipeline project in the third quarter of 2015. The first phase will connect Kepodang gas field with Tambak Lorok steam and gas power plant (PLTGU).

"We will stay on target because it is important to expedite the energy conversion from fuel to gas," said Ridha Ababil, PGN spokesman, to Tempo on Sunday, April 13, 2014.

Despite the obstacles, according to Ridha, PGN is fulfilling the responsibility tasked by the Energy and Mineral Resources Ministry to expedite the Kalija project, which includes the Kepodang-Tambak Lorok pipeline. The completion of the project, after being postponed for eight years, will mean a savings of Rp 2.1 trillion to the annual budget of state-owned electricity company, PLN.

"We want the gas to be eventually distributed to households, not only to big industries. In Java, only Central Java piped into the gas grid," Ridha added.

PLN had said it would not take over the Kepodang-Tambak Lorok pipeline project because PGN had been willing to carry out the project, through a consortium with Bakrie & Brothers.

"PGN has started building it, we believe PGN has the fund and means," Bambang Dwiyanto, PLN spokesman, told Tempo last weekend. PGN holds the majority of the Kepodang shares while Bakrie & Brothers owns of 20 percent.

 PINGIT ARIA | ANANDA PUTRI