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Java’s huge demand for natural gas, esp. in the power sector has to be met by importing gas from other sources. Sumatra, East Kalimantan, Papua and Sulawesi were considered as sources for supply. Transporting gas from East Kalimantan to Central Java using pipeline is the least costs option to be selected as the first priority, but over the longer term this option must be complemented by LNG chain option.

Transporting Natural Gas from East Kalimantan to Java: Why did we choose a pipeline option?

Oleh : Hanan Nugroho1, Eddy Satriya2, Nafrizal Sikumbang3

Abstract – Java’s huge demand for natural gas, esp. in the power sector has to be met by importing gas from other sources. Sumatra, East Kalimantan, Papua and Sulawesi were considered as sources for supply. Transporting gas from East Kalimantan to Central Java using pipeline is the least costs option to be selected as the first priority, but over the longer term this option must be complemented by LNG chain option.

1. Introduction

Indonesia has proved successful in developing LNG industry in the Asia-Pacific market and becoming the world largest exporter for LNG, but she has not yet succeeded in meeting its large domestic demand for natural gas, particularly experienced by Java, the most populous island where about 2/3 of Indonesian reside and industrial activities take place.

The Indonesia Law No. 22 Year 2001 concerning Oil and Gas states explicitly the priority for using the country’s natural gas for domestic usages. Given the existing poor natural gas infrastructure for domestic market, these will require that a national gas transmission system be put in place from Sumatra, Kalimantan, and possibly other sources.

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