Pertagas, PLN to sign Gresik-Semarang gas pipeline HoA soon

By Godang Sitompul

State-owned PT Pertamina Gas (Pertagas) and electricity firm PT Perusahaan Listrik Negara (PLN) are scheduled to sign the Heads of Agreement (HoA) for the construction of the Gresik-Semarang gas pipeline on June 17, 2013.

The two companies plan to develop the gas pipeline linking East and Central Java at the end of 2014 or early 2015.

?It (the HoA) should be signed on June 17 at the latest,? Head of Gas and Fuel Division at PLN, Suryadi Mardjoeki told Petromindo.com Monday.

Suryadi said that the pipeline will have the capacity to distribute 100 mmscfd of gas.

Separately, President Director of Pertagas, Gunung Sardjono told Petromindo.com that the company, a subsidiary of state-owned oil and gas firm PT Pertamina, was still in the process of obtaining final approval for the project from its parent.

?The FID (final investment decision) for the Gresik-Semarang project will be approved soon by the corporate. The target is to complete the project in the third quarter of 2015,? Gunung said.

Editing by Reiner Simanjuntak