Bloomberg Bakrie May Spend $170 Million Building Gas Pipeline

March 23 (Bloomberg) -- PT Bakrie & Brothers may spend as much as $170 million building a pipeline from a gas field off Java to a power plant in Central Java province, said Tubagus Haryono, chairman of the Indonesian pipeline regulator.

Bakrie & Brothers will begin constructing the 200-kilometer (120-mile) pipeline this year, Haryono told reporters in Jakarta today. Work is slated to start April 2011, he said. Bakrie & Brothers won special rights in 2006 to build 1,115 kilometers of pipelines connecting gas-rich East Kalimantan and Central Java provinces. Construction has been delayed as the company couldn’t find the gas in Indonesia’s part of Borneo to be brought to Java, Haryono said.

The company will now build a shorter pipeline as part of the project to transport between 120 million cubic feet and 200 million cubic feet of gas a day from the Carigali field, operated by Petroliam Nasional Bhd., to the Tambak Lorok power
plant owned by state utility PT Perusahaan Listrik Negara, Haryono said.

Bakrie will charge a fee of 84 cents, including a payment to the regulator BPHilir Migas, for each million British thermal units of gas transported, Haryono said on July 18, 2006, when announcing the winner for the special rights. The fees remain
unchanged, Haryono said today.

For Related News and Information:
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--Editors: Jane Lee, Clyde Russell.
To contact the reporter on this story:
Bambang Dwi Djanuarto in Jakarta at +62-21-2355-3020 or
bbjakarta@bloomberg.net.