The planned pipeline network would be divided into two segments connecting the Cirebon to Kandanghaur extending to 90-kilometer and a 50-kilometer pipeline from Tegal Gede to Muara Tawar in a bid to cope with the gas shortfall problems in the province.
Pertamina’s director for planning, development and sales, Harjana Kordiat said that a feasibility study is being currently conducted for the planned network’s technical and commercial aspects which will be complete next year.
The engineering, procurement and construction processes for the $200m project will begin in 2013, Harjana added.
Funds for the project would be obtained from the company’s internal budget and loans from financial institutions.
The pipeline network would gain gas supply from a liquefied natural gas receiving terminal in Central Java that would be constructed by Pertamina, reports The Jakarta Post.
