Lapindo and Medco to Supply City Gas

VIVAnews - The government signed a memorandum of understanding  with two holders of oil and gas production sharing contract (KKKS), PT Lapindo Brantas and PT Medco EP city gas supply in Palembang and Surabaya.

Director General of Oil and Gas at the Department of Energy Evita Herawati Legowo said that gas distribution aiming at household consumption is designed to reduce kerosene consumption.

"In 2008, we have made a research to supply gas through pipelines," said Legowo on Monday, March 23. 

This year, the government can only set up city gas infrastructure in Palembang and Surabaya. Afterwards, it is planned that the next project will be implemented in Tarakan and Sengkang.

Legowo said that Lapindo Brantas is ready to supply 2 million metric standard cubic foot per day (MMSCFD), while Medco will supply one MMSCFD.

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Translated by: Ariyantri E. Tarman