Bakrie pipe deal steps up Petronas Kepodang drive

By TAN HWEE HWEE Singapore

 13 December 2012 23:59 GMT

Malaysia’s state-owned Petronas looks set to push on with the development of the Kepodang gas field off Indonesia after concluding an agreement with Indonesian conglomerate Bakrie & Brothers for the use of the export pipeline to bring the gas output to shore.

The agreement will see Petronas footing an initial toll fee of about $0.37 per million British thermal units to Bakrie. The unit cost will be adjusted every year.

Bakrie president director Gafur Sulistyo Umar said the Indonesian outfit remains committed to completing the $175 million gas pipeline in the fourth quarter of 2014.

The 210-kilometre pipeline will carry 116 million cubic feet per day of gas from the Kepodang field to Indonesian state-owned utility PLN’s power plant in Tambak Lorok, Central Java, said Gafur.

Bakrie was awarded the rights to build, own and operate…

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