Pertamina asked to start building the Central Java FSRU soon
Wednesday, March 20 2013 - 02:59 AM WIB
Upstream authority SKK Migas has asked state oil and gas company PT Pertamina to realize the development of floating storage and regasification unit (FSRU) in Central Java soon in order to secure gas supply to the western and eastern areas of Java island.
The infrastructure development is badly needed to help solving the problem of gas shortage in Java, particularly in East Java.
"We are asking the company (Pertamina) to soon build the FSRU in Semarang, and the pipelines linking Semarang-Cirebon and Semarang-Gresik,? SKK Migas Natural Gas Commercialization Division Head Popi Ahmad Nafis told Petromindo.com in Jakarta on Wednesday.
Popi noted that SKK Migas had to make sure about the infrastructure development considering that there are different companies planning to build parts of the infrastructure.
"We?re confused on which will be built, the Semarang?Gresik pipeline or Gresik-Semarang one. Pertagas plans to build Gresik-Semarang pipeline, while Pertamina is also to build a pipeline to Gresik to flow the gas from its FSRU in Semarang. PT Pertagas has asked for a certainty of gas allocation at 180 MMSCFD in relation to its plan to build the Gresik-Semarang pipeline. It's still not clear at the moment,? he said.
He said that it's okay if PT Pertagas wants to develop the pipeline. ?But the question is why should it ask for a guarantee of gas allocation,? he said.
Separately, PT Pertagas President Director Gunung Sardjono admitted that the process of developing the Gresik-Semarang pipeline is ongoing while waiting for the final investment decision (FID) from its holding company PT Pertamina.
"We?re still continuing the process while waiting for the FID to be approved. Pertamina?s directorate of gas is finalizing a gas balance of Java during the period of 2013-2025. God willing, it can be completed soon so that the FID can then be approved,? he said.
Editing by Benget Besalicto Tnb.