Build Gas Transmission Pipelines From Aceh To Riau, Government Disburses IDR 7.8 Trillion

Gas Pipe (Photo: dock. Antara)

JAKARTA - The Directorate of Oil and Gas Infrastructure Planning and Development of the Ministry of Energy and Mineral Resources revealed the plan to build gas pipeline infrastructure from Dumai to Sei Mangke (Dusem).

ESDM Infrastructure Planning Coordinator Sugiarto said the Dusem transmission pipeline was originally 428 long to 555 km with funding sources from the State Revenue and Expenditure Budget (APBN) with a total investment of IDR 7.8 trillion.

The urgency of the construction of the Dusem transmission pipeline, said Sugiarto, will be the key to the integration of gas pipes along Sumatra and the integration of Sumatra-Java (with the construction of Cisem), channeling the potential of natural gas from the Aceh Andaman WK to be utilized in Sumatra and Java.

"The construction of Dusem is very, very important and there is also an urgency why it must be built immediately, the government has come down to carry out the project because it is the key to the integration of gas pipelines from Sumatra to Java," said Sugiarto, quoted on Friday, June 21.

In addition to this urgency, Sugiarto explained that Dusem's benefits are to support more affordable gas prices, reduce 3 kg LPG subsidies by Rp420 billion per year, save costs of Rp107 billion per year, save revised Rp720 billion per year, and potential state revenues of Rp1.89 trillion per year from oil and gas BPH contributions and Rp12 billion per year from BPH Migas contributions.

Sugiarto said that the approach strategy for providing Indonesian natural gas infrastructure was divided into West and East Indonesia, where in Western Indonesia, the connectivity of piped gas and Eastern Indonesia through the Virtual Pipeline, using ship-based LNG transportation modes. This is done with consideration of geographical factors and demand between the West and East.

"Last year we managed to complete the Cisem I pipe, this year we will continue the Cisem II development phase this July. Dusem is planned to start construction next year so that it is hoped that the interconnection of transmission pipes from Aceh and East Java can be realized soon," said Sugiarto.

Sugiarto explained that the construction of the Dusem pipeline has a legal basis listed in the regulations and is included in the National Strategic Project. Currently, his party is compiling documents and planning for the feasibility study that has been carried out by Lemigas and is included in the basic design in collaboration with Higher Education, and Detail Engineering, Procurement and Constructions, all of which are expected to be completed by the end of this year.