Pertagas might drop JV plan with Titis Sampurna

By Febry Silaban

PT Pertamina Gas (Pertagas), a gas distribution unit of state electricity firm PT Pertamina (Persero) said it might drop plan to set up JV with local firm PT Titis Sampurna to develop Gresik (East Java)-Semarang (Central Java) pipeline.

Pertagas President Director Hendra Jaya did not disclose reason for the decision.

Titis Sampurna through its subsidiary PT Sumber Petrindo Perkasa currently runs a 20 inch- 140 km pipeline that connects Cepu to Semarang.

Earlier scenario is that with the formation of the JV, Pertagas will only need to construct 135-km pipeline that will connect Gresik and Cepu, thus cutting investment and construction time significantly.

Pertagas is planning to construct the 275km pipeline that will transmit excess gas in East Java to Central Java, supplying gas for industry and power plants along the pipeline.

Editing by Alexander Ginting