Indonesia offers gas pipelines for investment

INDONESIA'S energy and mineral resources minister, Purnomo Yusgiantoro, has announced his government will allow foreign investors to invest in six gas-related projects worth some US$2.39 billion.
Indonesia offers gas pipelines for investment
Indonesia offers gas pipelines for investment
Indonesia offers gas pipelines for investment
Indonesia offers gas pipelines for investment
Indonesia offers gas pipelines for investment

These projects include the US$1.4 billion East Kalimantan-East Java pipeline network, the US$580 million East Java-West Java pipeline network, two phases of the Duri Dumai-Medan pipeline network worth $380 million and $225 million respectively, the US$110 million Singkang-Makassar pipeline network and the US$100 million Kepodang-Tambak Lorok pipeline network.

“You may invest in all lines of the gas sector: exploration, exploitation, transportation, storage and trading," Purnomo said at the IndoGas 2005 conference.

"We plan to build two natural gas reserve terminals in Java in the western and eastern part of the island. However much gas you can supply to Java will be completely absorbed by consumer demand.”

The minister called upon investors to negotiate with oil and gas regulatory bodies BP and BPH Migas about any interesting business opportunities. He acknowledged, however, investment in Indonesia’s gas sector still poses challenges to investors and that the government will take steps to rectify the situation.

“We will resolve overlapping regulations affecting the oil and gas sector and maintain the sanctity of all contracts that have been signed. We will also address problems that might arise from regional autonomy and fiscal regulations,” he said.

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