Tender Procurements and Contract Opportunities Indonesia

JAKARTA: The plan of building a floating storage and regasification terminal in East Java, Gresik-Semarang transmission pipelines, and gas production Cepu Block will be completed simultaneously in 2013 to ensure availability of gas supply for electricity, fertilizer, and industry in East Java and the surrounding areas.

President Director of PT Pertamina Gas Suharyanto said Pertamina will finalize FSRT project in East Java, Semarang, Gresik and pipes in parallel to ensure liquefied natural gas (liquefied natural gas / LNG) that is received can be channeled. For that, he said, the company will soon launch a second tender for the project in 2011 so that both can be used on infrastructure in 2013.

"Pipe-Semarang and Gresik to be completed by 2012-2013 will be tendered began in 2011. Same schedule for FSRT that we want to be finished in 2013. Now FSRT is under study to determine the location of the most optimal outcomes, whether in Surabaya, Gresik, or even in Central Java, "he said today.

In the same year, he said, gas production Jambaran Field, Block Cepu also expected to start production. According Suharyanto, gas will be fully absorbed by the electricity, fertilizer factories, and industry in East Java and the surrounding area.

"From FSRT it will produce 450 MMscfd of gas equivalent. If production is approximately 200 Cepu Block MMScfd. So for the industry in that area will be washed down about 650 MMscfd using Pertamina gas pipeline facility, "he said.

Related to the sale price, Suharyanto said the company had talked to two consumers of gas, ie one Maspion and metal companies in Surabaya. According to him, both companies are able to buy gas at a price equivalent of LNG.

"Based on surveys in the two companies, both are able to buy gas for LNG, which means that on top of current prices. LNG is currently worth around U.S. $ 8-US $ 14 per million Btu. That's still cheaper than if they use the fuel, "he said.

Maspion currently uses a combination of fuel oil and some gas. "If companies fully utilize the metal fuel." (Mrp) By: Rudi Arifianto (Bisnis.com)

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