| Project Management Consultancy Services for South Sumatra - West Java Gas Pipeline Project | Asia Oceania
Oil and Gas Development Consulting and Engineering Company, Japan Oil Engineering

The intended purpose of the South Sumatra – West Java Gas Pipeline Project (hereinafter referred to as the “Project”), that was planned by PT. Perusahaan Gas Negara (Persero) Ltd. (hereinafter referred to as the "Client" or "PGN") is to link the main gas reserve basins and sources of gas supply in South Sumatra to the main demand centers in West Java, in such a way as will enable effective utilization of the main non-exportable reserves.

For this project, JOE provided a comprehensive project management services for planning, procurement and implementation of the Project as a whole which covers the design, procurement, installation, testing and commissioning of the followings:

(i) a 32” diameter onshore gas transmission pipeline from Pagardewa to Labuhan Maringgai (approximately 270 km), through and including Terbanggi Besar Station, and a 28” diameter onshore gas transmission pipeline (approximately 4 km) from Pertamina’s new SPG Pagardewa Station (built by Pertamina) to and including Pagardewa Station (located adjacent to the proposed Compressor Station) – [Contract Package No. 1];
　
(ii) a 32” diameter offshore gas transmission pipeline from Labuhan Maringgai to Bojonegara (approximately 105 km) – [Contract Package No. 2];

(iii) Bojonegara Station and a 24” diameter onshore gas distribution pipeline from Bojonegara to Bitung Offtake Station (approximately 65 km) and from Bitung Offtake Station to Serpong Tie-In Station (approximately 9 km), all originally forming one (1) package [known as Contract Package No. 3], subsequently re-planned and implemented in separate packages, as follows:

　　(a) a pipeline station at Bojonegara to receive natural gas from the incoming pipeline from the South Sumatra side, and to transfer it to (i) the downstream distribution pipeline under Contract Package No. 4 [West Java Distribution Pipeline], and (ii) the downstream distribution pipeline under Contract Package No. 3A [Bojonegara – Cikande Distribution Pipeline] - [Contract Package for Bojonegara Station (CP-B)];


　　(b) a 24” diameter onshore gas distribution pipeline from Bojonegara to Cikande Offtake Station (approximately 35 km), and connected with the West Java Distribution Pipeline at Cikande – [Contract Package No. 3A];

　　(c) a 24” diameter onshore gas distribution pipeline from Cikande Offtake Station to Bitung Offtake Station (approximatelyapproximately 30 km), and connected with the West Java Distribution Pipeline at Bitung Offtake Station – [Contract Package No. 3B];

(iv) a 16” diameter gas distribution pipeline from Bojonegara (approximately 50 km) and sales gas delivery lines to PGN’s customers for the West Java Distribution Pipeline System – [Contract Package No. 4]; and

(v) a compressor station at Pagardewa to increase the gas operating pressure supplied by Pertamina from 400 psig to 1,050 psig – [Contract Package No. 5].

The National Energy Policy of the Republic of Indonesia seriously promote the increased domestic utilization of natural gas. However, the government’s effort is hindered by the distance between the natural gas supply/sources and demand locations. The demand of natural gas in Indonesia is mostly located in Java island (particularly in West area of Java), however the natural gas reserves are spread across the Indonesian archipelago. One of the main reserve basins is located in South Sumatra area.

In order to achieve the objectives of the National Energy Policy and to enable effective utilization of the main non-exportable reserves at low operational costs, an infrastructure of gas transmission is required to link the main gas reserve basin and sources of supply in South Sumatra to the main demand centres in West Java. Such gas transmission infrastructures development also required corresponding infrastructures for gas distribution in West Java.

As the result of this Project implementation, PGN can now provide the safe, robust, reliable, durable and cost-effective gas transmission and distribution facilities by developing and operating the South Sumatra – West Java Gas Pipeline Project under the authority given by the government of Republic of Indonesia.

For completing the Project, JOE provided 800 Man-Month (expatriate), 1,971 Man-Month (local key engineer), 2,833 Man-Month (local technical supporting staff and field supervisors) and 2,064 Man-Month (local project administration staff) throughout the period of Project.