BPH Migas issues ultimatum to Rekind
Monday, February 23 2015 - 02:20 AM WIB
Downstream regulator BPH Migas has issued ultimatum to state owned engineering firm PT Rekayasa Industry over the Cirebon-Semarang pipeline project, warning that the firm may lose the project if it continues delaying its development.
Rekind has been given until March of this year to decide what it is going to do with the project, BPH Migas? Gas Director Djoko Siswanto told Petromindo.com.
?If until March, Rekind?s plan remains unclear, we are going to take back the project and hand it over to PGN (state owned gas distributor PT Perusahaan Gas Negara), the runner-up in the previous auction of the project,? Djoko said.
Rekind won the auction to develop the 225-km pipeline that connects Semarang in Central Java to Cirebon in West Java in 2006. But, the firm has yet to start developing the project.
The pipeline will be connected to the Kepodang-Tambak Lorok gas pipeline which is being built by PGN to transmit gas from the Kepodang field offshore Central Java to PLTGU Tambak Lorok power plant in Semarang.
When asked about the progress of the Tambak Lorok-Kepodang pipeline, Djoko said PGN is waiting for a permit from the Ministry of Transportation to bring pipes and install them underwater.
Editing by Johannes Simbolon