Central Java government to take part in offshore pipeline project

The provincial administration of Central Java is preparing one of its companies to take part in the construction of a 205-km offshore pipeline project in the province, which will be built to supply natural gas to the Tambak Lorok power plant in Semarang, Bisnis Indonesia reported on Monday.

Eddie Haryono, the head of the province's mining office, said in Semarang over the weekend that the company to be appointed to take part in the project would cooperate with private companies under a 'golden-sharing' mechanism.

It means that the local government-owned company will cooperate with private companies to provide the funds for the construction of the offshore pipeline which would transmit about 145 million cubic feet per day of gas to the Tambak Lorok power plant.

The Central Java government has the rights to have a 10 percent interest in the offshore pipeline which will be built by Petronas of Malaysia. The provincial administration, through its company, has been given 60 days to submit its bid to use the rights to get a 10 percent interest in the project.

However, if it failed to submit its bid within the deadline, Petronas would give the opportunity to other national companies through an auction processes. (*)