JAKARTA: Indonesia to build 2,500 km gas pipe network

Pertamina revealed it will build a 2,500 kilometer (1,550 mile) gas pipeline network as part of a contract to supply natural gas from South Sumatra to West Java.
The 20 year contract for the supply of up to 600 million standard cubic feet of gas a day was signed by Pertamina and state gas company Perusahaan Gas Negara Thursday, Pertamina said in a press release.

Pertamina will build the necessary infrastructure, including the development of the Prabumulih gasfield in South Sumatra and the 2,500 kilometers of pipeline.

It will invest 500 million dollars to develop 22 gasfield structures and 60 new wells, upgrade 40 old wells and construct the piping network.

Under the contract, Pertamina will start supplying 250 million cubic feet of gas a day in the first quarter of 2005, gradually raising it to 500-600 million cubic feet a day.

The Prabumulih field currently produces 3.8 trillion cubic feet of gas a day and development will raise the output to 5.0 trillion cubic feet.

worldoil.com