Harnessing Rich Resources: South East Asia
By Odette Fleming
Although it is no longer a net exporter of oil, Indonesia is a leading exporter of natural gas. As domestic energy needs grow, Indonesia is increasingly focusing on securing energy sources for its domestic market.
Feasibility studies are being conducted to observe technical and commercial aspects of state-owned PT Pertamina’s proposed $US200 million 140 km pipeline network, which will run from Cirebon to Muara Karang in Jakata, and poses a potential solution to the gas shortage faced by the region.
Pertamina Gas Director for Planning, Development and Sales Harjana Kodiyat stated the planned pipeline network would be divided into two segments – a 90 km pipeline from Cirebon to Kandanghaur and a 50 km pipeline from Tegal Gede to Muara Tawar, and a LNG receiving terminal would be constructed in central Java to supply gas to the project.
Depending on the outcome of these feasibility studies, Mr Kodiyat said engineering, procurement and construction (EPC) processes are expected to begin in 2013.
Malaysia has one of the most extensive natural gas pipeline networks in the region and is the ninth largest exporter of natural gas in the world. For this reason, and due to its location within South East Asia, Malaysia is a prime candidate for the Association of South East Asian Nations (ASEAN)’s proposed Trans-ASEAN Gas Pipeline System, which aims to link ASEAN’s major gas production and consumption centres by 2020. In recent years, attention has turned to harnessing the country’s extensive offshore oil and gas resources via the Sabah – Sarawak Integrated Oil and Gas Project, which is due to be completed at the end of 2013.
Construction is ongoing on PETRONAS’ Sabah – Sarawak Integrated Oil and Gas Project, which involves the construction of a 512 km, 36 inch diameter pipeline to transport natural gas from the Sabah Oil and Gas Terminal in Kimanis (also under construction) to Petronas’ LNG complex in Bintulu, Sarawak, for processing.
Once commissioned, the Sabah – Sarawak Gas Pipeline (SSGP), which is being constructed using API 5L X70 steel grade pipe, with a thickness range of 14, 17, and 20 mm, and will have a design pressure of 96 bar, will be able to transport 750 MMcf/d of gas.
In 2008, Punj Lloyd was awarded the engineering, procurement, construction and commissioning contract for SSGP and associated facilities. The company reported significant challenges in fulfilling its role due to the rough mountain terrain, constant wet weather and stringent regulatory processes by the Department of Safety and Health, Department of Environment, and Department of Irrigation and Drainage.
The exact amount of extractable and recoverable gas reserves in Myanmar is unknown, however, the potential that is known to be held within this country has led to a number of infrastructure projects being proposed and constructed between Myanmar and neighboring countries, such as India and China.
In March 2010, Bangladeshi Prime Minister Sheikh Hasina Wajed gave approval for the construction of a proposed 950 km gas pipeline, which will pass through Bangladesh to link Myanmar and India, following discovery of a gas field in offshore North-West Myanmar. Various options are being considered, including a land route via the eastern Indian states of Tripura and Mizoram, an offshore route through the coastal areas of Bangladesh and a deep-sea route with landing in the state of Orissa. A northern route which bypasses Bangladeshi territory is also under consideration.
In addition, construction on the Myanmar–China Pipeline Project began in June 2010, and is expected to be completed in 2013. The project involves the construction of a 2,402 km crude oil pipeline and a 2,500 km natural gas pipeline running between the two countries, and is designed to improve transit efficiency by eliminating the long detour that oil cargoes take through the Malacca Strait.
The crude oil pipeline will extend 771 km through Myanmar and 1,631 km through China and will have a design capacity of 22 MMt/a of oil. The natural gas pipeline will extend for 793 km through Myanmar and 1,727 km in China and will have a design capacity of 10–13 Bcm/a of gas.
Work on the Myanmar section of the pipelines began in June 2010 and in August 2011 a commencement ceremony was held to celebrate the welding of the Myanmar section of the pipelines.
The oil pipeline is jointly invested and built by CNPC and Myanmar Oil and Gas Enterprise (MOGE), and the gas pipeline is jointly invested and built by CNPC, MOGE, Daewoo International, KOGAS, IndianOil and GAIL.
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