Navigating the intricate landscape of energy infrastructure projects, the Ministry of Energy and Mineral Resources (ESDM) finds itself at a crossroads with the Trans Kalimantan Gas Pipeline Project after the project endeavor languishes in a state of prolonged stasis.
This transformation from private-sector bidding to government intervention, backed by multi-year budgetary allocations from the State Budget (APBN), underscores the dynamic challenges facing the nation’s energy landscape.
Delving into the intricacies, Laode Sulaeman, Director of Planning and Infrastructure Development for Oil and Gas at ESDM, sheds light on the absence of the Trans Kalimantan project from the National Strategic Project (PSN) list, with economic evaluations and a comprehensive view of the project’s scale having led to its exclusion.
Simultaneously, the Ministry maintains unwavering focus on advancing the second phase of the Cirebon-Semarang pipeline, a segment from Batang to Kandang Haur Timur, earmarked for construction initiation in June 2024. The estimated investment of around Rp3.34 trillion (US$215 million) from APBN, utilizing a multi-year contract framework for 2024-2025, signifies the magnitude of this strategic development.
In addition to the Cirebon-Semarang phase, the Ministry charts a course for a 400-kilometer pipeline from Dumai to Sei Mangke, anticipating operational readiness by 2027. Laode emphasizes the strategic importance of this pipeline for catering to the gas demands of Java and Sumatra, projecting an investment of Rp6.6 trillion.
Upon completion of the Sumatra-to-East Java gas pipeline, additional gas network connections are anticipated in Cisem (300,000 households) and Dumai-Sei Mangke (600,000 households). These milestones are forecasted to yield substantial economic benefits, including the reduction of the annual 3 kg LPG subsidy by Rp630 billion and saving Rp1.08 trillion in LPG import expenditures.
Within this complex landscape, PT Bakrie & Brothers (BNBR) emerges as a pivotal player awaiting directives from the Downstream Oil and Gas Regulatory Agency (BPH Migas) regarding the Trans Kalimantan Gas Transmission Project. Presently, BNBR stands in a holding pattern, awaiting instructions from both the government and BPH Migas.
The scope of BNBR’s involvement extends to the construction of the Bontang (East Kalimantan) to Takisung (South Kalimantan) section. The evolution of this project, initially conceived to connect Kalimantan and Java, underwent revisions in 2018, pivoting its focus towards the Bontang-Takisung route.
BNBR’s projections paint a vivid picture of the anticipated gas demand in South Kalimantan at approximately 97.25 MMscfd, followed by East Kalimantan at 306.72 MMscfd. The broader Kalimantan region foresees substantial demand, especially in the Maloy Batuta Trans Kalimantan Special Economic Zone (MBTK), projecting a demand of 34.80 MMscfd. The long-term market outlook indicates a demand of 1,425 MMscfd with 137 MMscfd in South Kalimantan and 2,212 MMscfd with 212 MMscfd in East Kalimantan by 2037.
Despite the challenges, the Trans Kalimantan Gas Pipeline Project emerges as a transformative force poised to address diverse gas demands, reshape regional economies, and fortify national energy security. The government’s strategic focus, regulatory directives, and private sector engagement collectively set the stage for an enduring and impactful energy infrastructure.
