Pertamina Gas (Pertagas), a subsidiary of Pertamina, plans to spend up to $500 million in 2013 to build a 267 km gas pipeline from Gresik, East Java, to Semarang, Central Java. The proposed pipeline, with a capacity of up to 500 million standard cubic feet per day (mmscfd), has all the required permits. Construction works are expected to start by July 2013 and end by 2014. Earlier in the year, the company also announced its plan to invest $500 million in the construction of a 350 km gas pipeline to connect Belawan port in North Sumatra and the Arun regasification plant in Aceh. The pipeline, with a capacity of 200 mmscfd, will transport natural gas shipped from the Tangguh liquefied natural gas (LNG) plant in West Papua, totalling around 80 mmscfd, to the state-owned utility firm PLN, and the remainder to the industry surrounding Medan in North Sumatra. The pipeline project is scheduled to commence in April 2013, with an expected completion date of end-2014.
