Cirebon-Semarang gas pipeline project to start construction soon
Wednesday, April 8 2015 - 12:55 AM WIB
Construction of the long-delayed Cirebon-Semarang gas pipeline project will start soon as a groundbreaking ceremony is scheduled for May or June, said Head of the downstream oil and gas regulator BPH Migas, Andi Norsaman Sommeng.
He said that state-owned engineering firm PT Rekayasa Industri (Rekind), which won tender of the project in 2006, will partner with PT Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas firm PT Pertamina, in developing the 260-270 Km pipeline.
?On March 19, we received a letter on cooperation agreement between Rekind and Pertagas. The MoU has been signed, and the plan is for the gas to be on stream in 2019,? Andi said.
The 28-inch diameter pipeline will connect Semarang in Central Java and Cirebon in West Java
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.
Elsewhere, Andi said that Rekind and Pertagas plan to set up a new joint venture company for developing the project. The share ownership is being discussed by the two firms on a business to business basis, he added.
?We?re more focused on pushing for the development of the project which has suffered an 8-year delay,? he said.
Andi added that the Cirebon-Semarang pipeline project was estimated in 2006 to cost about US$170 million to transmit 350 mmscfd of gas.
Editing by Reiner Simanjuntak