Pertamina assigned to develop two key gas pipeline projects
Thursday, February 12 2015 - 01:18 AM WIB
Acting Director General of Oil and Gas I Gusti Nyoman Wiratmadja was quoted by Koran Tempo as saying Thursday that the government will provide equity participation into the company to finance the projects.
The government handed over the projects to Pertamina after state-owned PT Rekayasa Industri failed to realize them. ?Now, it is the government which will finance the projects, and Pertamina will be the one to build and operate them,? Wiratmadja said.
He said that the government will inject Rp 112.5 billion this year to finance survey, land preparation and FEED activities for the Semarang-Cirebon-Balongan pipeline project. In 2016, the government via the state budget will provide Rp 2.25 trillion for land acquisition and construction. In 2017, Rp 1.5 trillion will be allocated to finalize construction process, in the hope that it would start operation in the year. Gas supply for the project will come from the Jakarta and Semarang floating storage gas regasification units.
For Balikpapan-Samarinda project, the government will inject this year Rp 29.25 trillion for survey, land preparation and FEED. Another Rp 585 billion will be allocated next year for land acquisition and construction, and another Rp 390 billion to finalize construction process in 2017. (*)