Pertamina Asks Lapindo to Finance Relocation of Gas Pipelines
Wednesday, 11 October, 2006 | 14:31 WIB

Tempo Interactive, Jakarta: PT Pertamina (Persero) is asking that Lapindo Brantas Inc cover all costs for relocating pipelines that channel gas to hundreds of industries in Surabaya, Sidoarjo and Gresik.

“Lapindo should cover the costs,” Sukusen Soemarinda, the Director of Upstream at Pertamina, told Tempo.

However, according to him, the decision concerning the funding of relocation will be made by the National Team for Handling Mudflows.

According to Sukusen, Pertamina is still studying pipeline handling around the mudflow area.

The team of eight persons will study and observe the condition of the pipelines that have to be moved.

Then, an independent consultant would be appointed.

“We are worried that if the level of soil declines, the pipelines will be dangling and they may collapse,” he said.

The pipelines are now buried under the mud for around one meter.

Nevertheless, they are still capable of supplying gas properly.

Widyatmiko Bapang, secretary of PT PGN Tbk, said that he had fully handed over the plan of relocating the pipelines to Pertamina as the owner.

He has also assured that if the relocation of pipelines was carried out, it would not disturb gas supply.

The reason for this is that there is a system in the pipeline network that if one pipeline cannot be used, other pipelines still can be utilized.

Widyatmiko went on to say that relocation will not affect gas prices.

The reason for this is that gas prices follow contract provisions.

“Long-term contracts have been made. The distribution fee is already included in the gas price,” he said.

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