Pertagas starts building Gresik-Semarang pipeline
Wednesday, October 8 2014 - 09:28 AM WIB
The construction of the pipeline was inaugurated by Coordinating Minister of the Economy Chairul Tanjung in a ceremony in Bojonegoro on Wednesday.
The pipeline, which will become part of the Trans-Java gas pipeline, will stretch from Pertagas?s motoring station in Gresik to Tambak Lorok, where state owned electricity firm PT Perusahaan Listrik Negara (PLN) has a power plant.
The pipeline has a capacity of 50 mmmscfd. It will be built by the consortium of PT Wijaya Karya (Persero) Tbk., PT Remaja Bangun Kencana Kontraktor and PT Kelsri with construction estimated to stake 18 months and operation scheduled to start in the first quarter of 2016. The project is worth US$515.7 million, Pertagas?s President Hendra Jaya said.
The pipeline will pass four regencies/mayoralties in Central Java and three regencies in East Java. The pipeline will receive excess gas allocation amounting to 30 mmscfd from Kangean block in East Java starting in 2016 and another 100 mmscfd from Tiung Baru and Cendana gas fields of the Cepu block starting in 2019 and 110 mmscfd from Alas Tua field in Cepu in 2022.
Editing by Johannes Simbolon