Acceleration of the natural gas infrastructure in line with the Government’s efforts continue to improve the allocation of domestic natural gas. Energy and Mineral Resources (or ESDM) Minister Jero Wacik said, the availability of cheap energy such as natural gas will encourage investments and investors to various industrial sectors. It would be very positive for job creation and increased prosperity, especially in Central Java. Through the Minister of Energy and Mineral Resources Decree No. 2700 K/11/MEN/2012, the Government decided to build a pipeline Kalija gradually.
Background, Needs and Benefit Java Gas Pipeline Development Kalija
Director of Natural Gas Downstream Regulatory Agency or Direktur Gas Bumi Badan Pengatur Hilir (BPH) Migas Hendra Fadly said “Needs can be up to 700 MMscfd Java [million standard cubic feet per day], the capacity of the Kalimantan pipeline is planned to 700-800 MMscfd”.
Hendra also confirmed Kalija pipeline project remains feasible, although later in the gas needs to be supplied by the Java FSRU is now owned three of Indonesia (Jabar, Jateng, dan Lampung), and other facilities LNG carriers, it is still not enough, because of the small FSRU capacity that can be streamed gas.
Minister Jero Wacik said, the availability of cheap energy such as natural gas will encourage investments and investors to various industrial sectors. It would be very positive for job creation and increased prosperity, especially in Central Java. (As quoted from webpage jaringnews.com).
Plan allocation of domestic gas in 2014
Acceleration of the natural gas infrastructure in line with the Government’s efforts continue to improve the allocation of domestic natural gas.
- In 2014, domestic gas allocation plan totaled 4,560 billion British thermal units per day (BBTUD) or 57.3 percent of the total production,
- while in 2013 the allocation of domestic natural gas as much as 3,774 or 52.6 percent BBTUD.
Kalija Pipeline Project
Based on the Decree of the Regulatory Agency for Upstream Oil and Gas (BPH Migas) No. 042/PL/BPH Migas/Kom/VII/2006 dated July 27, 2006, established that PT Bakrie and Brothers Tbk (Bakrie) as the preferred bidder Privileges Gas Transmission Segment Bontang (East Kalimantan) to Semarang (Central Java), through auction year 2006.
Through the Minister of Energy and Mineral Resources Decree No. 2700 K/11/MEN/2012, the Government decided to build a pipeline Kalija gradually.
Bakrie & Brothers has received many job offers, finally decided the project was done in collaboration with PGN, one of state-owned enterprises (SOE) or BUMN that have good experience in the operation of the gas industry in Indonesia.
Bakrie & Brothers with PGN, has formed PT Kalimantan Jawa Gas (KJG) as project implementer and operator. KJG is a joint venture between PT PGN and the Bakrie Group, which is 80 percent owned by state-Gas, PT Perusahaan Gas Negara (PGAS), while the remaining 20 percent owned by PT Bakrie & Brothers(BNBR). (PGAS 80% stake and BNBR 20% stake).
Gas Transportation Agreement (GTA) between Bakrie as transporters, PT PLN as buyers and Petronas Carigali Muriah Ltd. as operator of Kepodang gas field, was signed last December 2012.
Kalija Phase I
Kalija Phase I transmission pipeline project,
- Along the 207 kilometers.
- pipe connecting the gas resources Kepodang field in the offshore Jepara toward PLTGU Tambak Lorok in Semarang operated by PT Indonesia Power, a subsidiary of PT PLN (Persero).
- Capacity streamed gas in transmission pipelines Kalija I reach 116 million cubic feet per day (MMSCFD).
Kalija Phase II
Kalija Phase II project,
- along the 1,200 kilometer
- connecting the gas resources in East Kalimantan to Java.
- Kalija pipeline will built by PT Kalimantan Jawa Gas (KJG) is a joint venture between PT Perusahaan Gas Negara Tbk (PGN) and PT Bakrie & Brothers Tbk.
President Director of PT Perusahaan Gas Negara (PGN) Hendi Prio Santoso said the investment fund project Kalimantan-Java pipeline transmission (Kalija) phase I and II reached 1.7 billion dollars, or about Rp19 trillion. (As quoted from page Aktual.co / 14:03:14)
“Kalija Phase I project value between 150-200 million dollars, while for the second phase reached 1.5 billion U.S. dollars,” said Hendi while following the inauguration of the commencement of construction (groundbreaking) infrastructure project in Semarang, Friday (14/03/2014).
Three Corridors of Natural Gas Distribution Network Project in Central Java
Development of Integrated Gas Infrastructures Project in Central Java, the project includes Kalija Transmission Pipeline which will be completed in two phases and Gas Distribution Project in Central Java are divided into three corridors.
PGAS corridor will also develop three natural gas distribution network in Central Java is
- Corridor I, which includes Kendal – Semarang – Demak (48 km),
- Corridors II: Unggaran region (34 km) and
- Corridor-III in Pekalongan Solo Raya-Pati (235 km).
In Bahasa Indonesia: “Mega Proyek Pipa Transmisi Gas Kalimantan-Jawa (Kalija)”
Reference / read more:
- “Infrastruktur Pipa : Kepodang hanya penuhi pembangkit”, Tutun Purnama, Bisnis Indonesia, hal. 7, 14-Mar-2014.
- “Pipa Gas Kalija II Tetap Dibangun”, http://www.bakrieglobal.com/news/read/2654/Pipa-Gas-Kalija-II-Tetap-Dibangun
- “Legislator tidak setuju pembangunan pipa gas Kalija”, http://www.antaranews.com/berita/425001/legislator-tidak-setuju-pembangunan-pipa-gas-kalija
- “Investasi Pipa Kalija Capai USD1,7 Miliar”, http://m.aktual.co/energi/170040investasi-pipa-kalija-capai-usd17-miliar
- “PGN Akuisisi Proyek Kalija”, 14 Mar 2014, http://www.republika.co.id/berita/ekonomi/bisnis/14/03/14/n2fjko-pgn-akuisisi-proyek-kalija
- “Pembangunan Proyek Pipa Kalija Tahap II Mulai Maret 2014”, 24-Feb-2014, http://bisnis.liputan6.com/read/2014571/pembangunan-proyek-pipa-kalija-tahap-ii-mulai-maret-2014
- “Akhirnya SBY Resmikan Proyek Pipa Gas Kalija Setelah Mandeg Sejak 2006”, (Alb / Ben), http://jaringnews.com/ekonomi/umum/58261/akhirnya-sby-resmikan-proyek-pipa-gas-kalija-setelah-mandeg-sejak-
- Bakrie Pipe Pasok Proyek Pipa Gas Kalija, http://wartaekonomi.co.id/berita25930/bakrie-pipe-pasok-proyek-pipa-gas-kalija.html
- Lapangan Kepodang dan Ketapang Siap Produksi Pada 2014, http://www.esdm.go.id/berita/migas/40-migas/5704-lapangan-kepodang-dan-ketapang-siap-produksi-pada-2014.html