The Ministry of Energy and Mineral Resources (ESDM) has planned to proceed with the construction of the Dumai-Sei Mangkei gas transmission pipeline in Sumatra and target its completion in 2027.
Laode Sulaeman, the Director of Oil and Gas Infrastructure Planning and Development at the Ministry of ESDM, revealed that a proposal has been submitted to the Ministry of Finance to fund the project through the state budget (APBN). This pipeline is intended to deliver gas to Java.
“The project tender is scheduled for 2025, with an estimated value of Rp7.8 trillion (US$510 million),” Laode said during a meeting in Batang, Central Java, on Monday, September 30, 2024.
At present, the project is still in its basic design phase, with no final determination on the exact length of the Dumai-Sei Mangkei pipeline. Albeit, previously it was planned for 400 kilometers as per ESDM press release on Friday, January 5, 2024.
“We are still calculating the route, but the pipeline is expected to exceed 500 kilometers,” he added.
The development of this segment follows the government’s focus on building the Cirebon-Semarang (Cisem) gas pipeline, which is expected to be completed by February 2026.
“Once the Dumai-Sei Mangkei pipeline is finished, the gas network from Aceh to East Java will be connected as one line,” Laode said.
The transmission pipeline, spanning Sumatra, West Java, and East Java, is part of a broader effort to strengthen the national gas supply chain.
The Dumai-Sei Mangkei pipeline project will also contribute to providing more affordable gas prices by lowering toll fees, and it aims to meet gas demands for industries, power generation, commercial use, and households. This project is part of the National Strategic Program under Presidential Regulation No. 109/2020. The pipeline will facilitate the long-term delivery of gas from the Andaman production area in the north to the southern part of Sumatra.
