Pertagas to take over Semarang-Cirebon gas pipeline
Tuesday, October 9 2012 - 08:33 AM WIB
Pertagas will take over the development of Semarang-Cirebon gas pipeline from PT Rekayasa Industri (Rekind), which previously won the project tender from downstream regulator BPHMigas.
?We?ll soon meet with Rekind to finalize the project takeover. But we have yet to decide whether to acquire it or pursue some kind of partnership with the company,? Pertagas President Director Gunung Sardjono told the press on the sidelines of the 12th Gas Information Exchange (GASEX) 2012 in Bali on Tuesday.
He said that Pertagas was asked by the government to take over the gas pipeline development, so that the company would work on two similar pipeline projects, namely the Gresik-Semarang pipeline and Semarang-Cirebon pipeline. ?Hopefully, we will finish both projects at the third quarter of 2014. The only potential problems we might be facing are those with the Semarang-Cirebon project as we have yet to clear things related to Rekind before proceeding with its development,? he said.
He noted that the investments needed for the development of both pipeline projects are estimated to amount to between US$600 million and US$800 million in total. The two projects are part of the planned trans-java gas pipeline, which is expected to be finalized by 2014.
Editing by David Mustakim