Indonesian gas distributor PT Perusahaan Gas Negara Tbk (PGN) is considering a $1.7 billion gas pipeline from East Kalimantan to Java island, a senior company official said.

“We are looking at a new East Kalimantan to Java gas pipeline project, because Java will need more gas in coming years,” PGN chief W M P Simandjuntak said. “We’ll start a technical study of this project in September.”
Another PGN official said the 1,600 km pipeline would cost around $1.7 billion.
“There would be a lot of benefits in a gas pipeline from East Kalimantan to Java as consumption will be much, much higher in the future,” said the official.
Simandjuntak said the company was still studying ways of financing another project involving a 450-km  gas pipeline from Central Sumatra to North Sumatra that would cost $350 million.