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Indonesia's biggest gas distributor, the state-run PT Perusahaan Gas Negara (PGN), said Friday it has started transporting gas from ConocoPhillips' gas field in Grissik in South Sumatra using a new pipeline section.

The new pipeline section stretches from Grissik to Pertamina's gas field in Pagardewa, South Sumatra. The operation of the section will increase the gas volume transported to western Java customers via the South Sumatra-West Java transmission pipeline (SSWJ).

The completion of the Grissik-Pagardewa section was about two months behind schedule as work was disrupted by flooding.

"Gas flow from ConocoPhillips field will be delivered gradually starting at a volume of 20-50 million standard cubic feet per day (MMSCFD) in October 2007," said PGN corporate secretary Heri Yusup.

"The whole capacity of the SSWJ transmission pipeline is expected to reach 230 MMSCFD by the end of 2007 and will continue to increase to 480 MMSCFD in 2008."

(US$1 = 9,071 rupiah)

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