Pertamina Gas plans two new gas pipelines

According to sources, Pertamina Gas is planning Rs. 2 trillion – Rs. 3 trillion (US$ 221 million – US$ 332 million) in capital expenditure next year to help finance projects, doubling the Rs. 1 trillion it spent this year.

Founded in 2007, Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas company Pertamina, plans to expand its involvement in gas pipelines and distribution.

“We have several new big projects to work on next year as we want to boost our profits by 2015,” said Gunung Sardjono Hadi, President Director of the company.

The company has so far constructed a gas pipeline in East Kalimantan, from Simenggaris to Bunyu. It has also built a pipeline to transport gas to state fertiliser producer Pupuk Sriwijaya in Palembang, South Sumatra.

Gunung said Pertagas aims to expand, with plans to develop a new gas pipeline connecting Semarang in Central Java and Gresik in East Java. It is expected that the 258 km pipeline will be completed in 2013, at an estimated cost of around Rs. 2.8 trillion.

There are also plans to build a gas pipeline linking Jambi and Plaju in Palembang. This project, with an estimated cost of Rs. 760 billion, is expected to be completed in 2012.

Another project, a natural gas liquids plant in South Sumatra, will cost Rs. 883 billion and should be finished in September 2012. All projects will be financed by “internal cash”, he added.

Pertagas expects profit to rise to Rs. 750 billion this year before reaching Rs. 1 trillion in 2012. According to its website, the company posted profits of Rs. 589 billion in 2010 and Rs. 198 billion in 2009. It forecast that its sales would hit Rs. 2.06 trillion this year, after it booked total sales of Rs. 1.929 trillion in 2010 and Rs. 1.48 trillion in 2009.

Read the article online at: https://www.worldpipelines.com/business-news/06122011/pertamina_gas_plans_two_new_gas_pipelines/