Cirebon-Semarang project awaits acquisition talks: BPH Migas

By Godang Sitompul

Downstream regulator BPH Migas expects the development of Cirebon-Semarang gas transmission pipeline to be completed at the fourth quarter of 2014, said a top official.

The Cirebon-Semarang project will come hand in hand with the Semarang-Gresik pipeline, both of which are part of the planned trans-java gas pipeline, all are expected also to be finalized by 2014.

While land acquisition remains the biggest challenge for the Cirebon-Semarang lane, the ongoing talks between PT Rekayasa Industi (Rekin) and PT Pertagas also stall the project, according to BPH Migas Director of Natural Gas Hendra Fadly.

?Pertagas won the tender for the Semarang-Gresik, while Rekin won the Cirebon-Semarang. As Pertagas is taking over the Cirebon-Semarang project, the lane development will wait for the completion of the acquisition talks,? Hendra told petromindo.com.

The investments needed for the development of both pipeline projects are estimated to amount to between US$600 million and US$800 million.

Editing by Dadan Wijaksana