Pertagas to team up with Rekind to develop Semarang-Cirebon pipeline

By Godang Sitompul

PT Pertamina Gas (Pertagas) will team up with state engineering firm PT Rekayasa Industri (Rekind) to develop Cirebon-Semarang gas pipeline project, in line with direction from parent company PT Pertamina and ministry of state owned enterprise, a Pertagas top official said.

CEO Hendra Jaya told Petromindo.Com on Tuesday that the project is expected to become onstream in late 2015.

Earlier this year, Rekind as the right holder to develop the pipeline, has returned back the right to downstream regulatory body BPH Migas as it was unable to secure gas supply for the project.

Minister of state owned enterprise Dahlan Iskan has ordered Rekind to continue to develop the project by teaming up with Pertagas, which is a wholly owned subsidiary of Pertamina.

Hendra did not give detail about the JV arrangement.

Rekind was given right to develop the 225-km pipeline that connects Semarang in Central Java to Cirebon in West Java in 2006.

The Semarang-Cirebon is part of the integrated 682.1 km trans-Java pipeline network.

Editing by Alexander Ginting