5 companies submit bids to develop E.Java-W.Java pipeline project

Downstream oil and gas regulatory body BPH Migas said only 5 local companies submitted bids to develop pipeline segments that would link Gresik in East Java and Cirebon in West Java.

BPH Migas chairman Tubagus Haryono told reporters on Friday that the five companies are state oil and gas company PT. Pertamina, state gas distribution firm PGN, PT. Rekayasa Industri, PT. Moeladi and pipemaker PT. Bakrie Pipe Industries.

The pipeline development is divided into two segments; the 230-km Cirebon-Semarang segment and the 250-km Semarang-Gresik. The project is part of the government effort to create Indonesian pipeline grid that would connect gas rich areas to the industrial island of Java.

Tubagus said winners would be given 25 years monopoly right over the segments. He did not say when the winners would be announced. (godang)