State-run gas distributor PT Perusahaan Gas Negara (PGN) says that it is completing a 72-kilometer gas pipeline project in a bid to accommodate rising industrial gas demand in East Java.
PGN SBU II general manager Wahyudi Anas said the project also aimed to enhance gas networks in the province to help improve the competitiveness of related industries that used the gas.
“It is important because there are a lot of industrial zones being developed between Mojokerto and Jombang,” Wahyudi said in Surabaya on Wednesday.
In Jombang, for instance, there are three major industries, which together consume 5 million standard cubic feet per day (mmscfd) of gas, that have shown an interest in acquiring gas from PGN.
“PGN served nine industrial parks with 103 customers. The parks consume 34 mmscfd of gas, which is equal to Rp 3.3 trillion [US$ 287.1 million] in energy saving costs per year,” he said.
The 72 km pipeline project is being divided into three stages. The first will see the development of 15 km of pipe across Pasuruan, Kejayan and Purwosari. Then in the second stage, PGN will lay 30 km of pipe from Kalisongo to Waru.
In the last phase, the firm planned to lay a 27 km pipeline from Jetis to Ploso, Wahyudi said. He added that the first stage had entered pre-construction by an engineering, procurement and construction (EPC) contractor.
The first phase is expected to be completed by the end of 2015, adding 10 mmscfd of gas to the province’s overall total. (nfo)
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