Pertamina, KAI sign energy, logistics cooperation

State-owned oil and gas firm PT Pertamina signed MoUs on Friday with state-owned railway company PT KAI for cooperation in energy and logistics areas.

The first area of cooperation is for Pertamina to lease land owned by KAI for the development of gas pipeline and LNG depot. Pertamina President Director Dwi Sutjipto was quoted by Kontan as saying that after having leased land along the 207-km Semarang-Gresik rail route for gas pipeline, the company wants to use KAI?s land in Sumatra for new pipeline projects.

Dwi said that by leasing land from KAI, Pertamina would be spared from the difficulties in acquiring land for infrastructure project.

The second are of cooperation is for KAI to use LNG from Pertamina as alternative to fuel oil as the former is seen cheaper, which in turn could help reduce operational cost of the railway firm.

The third area of cooperation is for Pertamina to look into the possibility to use railway in the transport of LNG and fuel oil in the future. (*)