BPH Migas gives Pertamina 2 months to decide on gas pipeline

Downstream Oil and Gas Regulator BPH Migas has set a two-month deadline for state oil and gas company PT Pertamina to make a decision on whether it will withdraw or continue the construction of gas pipeline from Semarang to Gresik.

The two-month deadline will be effective from August 8, 2006.

BPH Migas chairman Tubagus Haryono said that it was the decision of BPH gas committee,which was made after Pertamina has failed to reach a deal with railway company PT Kereta Api Indonesia (KAI) regarding providing land for installation of gas pipelines.

Tubagus said that if Pertamina withdraws from the project, most probably it will be allocated to the second best tender, PT Rekayasa Industri (Rekin).

?There are two alternatives, transfer or call for a fresh tender but holding a new tender will take a long time,? Tubagus said in Jakarta on Thursday.

On March 2006 BPH Migas awards Pertamina for special right to develop and operate Gresik-Semarang 250-km pipeline section. The pipeline is part of national pipeline grid that was planned to connect the islands of Sumatra, Java and Kalimantan. The pipeline will be designed to flow 350-500 MMCFD of gas (godang)