19 firms to take part in Java's gas pipelines tender

As many as 19 companies including state owned oil and gas company Pertamina, state owned gas distribution company PGN and PT Trans Java Gas Pipeline will compete for the government's special rights to build the 480-km gas pipeline linking Cirebon-Semarang (230-km), in West Java; and Semarang-Gresik (250 km), in East Java,Investor Daily reported on Tuesday.

Tubagus Haryono, the chairman of the government's agency in charge of oil and gas downstream sector BPH Migas, said in Jakarta on Monday that 21 companies had applied to take part in the auction to build the US$538 million gas pipeline project but only 19 firms were qualified.

"Two other companies PT Triparta Engineers and Constructors, and PT Energasindo Heksa Karya were disqualified due licensing problem," Tubagus was quoted as saying.

In addition to Pertamina, PGN and Trans Java, the other qualified companies include PT Moeladi, PT Rekayasa Industri, PT Punj Lloyd Indonesia,PT Giga Intrax,PT Transportasi Gas Indonesia, PT Bakrie&Brothers, PT Rabana Gasindo Usama, PT Amec Berca Indonesia, PT Cipta Dekatama Tastek, PT Sadikun Niagamas Raya, PT Wahana Insannugraha, PT Igas Utama, PT Trinergy, PT Tranaco Utama and PT Barata Indonesia.

The winners of the tender will be given special rights to build the pipeline under a build and operate (BO) contract for certain period of time.

The construction of the 480-km gas pipelines will be divided into two sections. The first section will cover the construction of 230 km gas pipelines from Cirebon to Semarang. The second section will cover the construction of 250 km gas pipelines linking Semarang and Gresik.

The gas pipeline project which will be built a total cost of about US$538 million will be able to supply between 350 and 500 million cubic feet of gas per day. The winners of the project will be announced in November. (*)