INDONESIA is set to begin construction of a gas pipeline to the West Coast of Peninsular Malaysia from its gas terminal at Pembing Island off Batam if a contract for gas sales is finalized, Perusahaan Gas Negara’s president WMP Simandjuntak is reported to have annnounced recently. Construction of the pipeline to a site near Port Dickson will begin as soon as the contract is signed, Simandjuntak said. “The Malaysians need the gas, and it is too expensive for them to deliver more gas to the West Coast of Peninsular Malaysia from the east,” he said. The proposed first gas pipeline project from Indonesia to Malaysia will also further establish the planned Trans Asean Gas Pipeline grid.
Indonesia’s Mines and Energy Minister Purnomo Yusigiantoro said that the Indonesian government is pushing state-owned oil and gas company Pertamina to conclude the gas sales to Malaysia. “Pertamina and Petronas are negotiating the gas supply deal now. We’re hoping the deal will be concluded as soon as possible,” Purnomo said.