Pertamina teams up with Rekind to build Semarang-Cirebon pipeline

By Godang Sitompul

PT Pertamina Gas (Pertagas) will join state engineering firm PT Rekayasa Industri (Rekind) to develop the Semarang-Cirebon pipeline project.

?That?s right, we shall work together with Rekind to build the Semarang-Cirebon pipeline,? Pertagas?s President Director Hendra Jaya said.

Downstream regulator BPH Migas has issued ultimatum to Rekind to soon develop the project or else the firm will lose the project.

Rekind has been given until March of this year to decide what it is going to do with the project, BPH Migas? Gas Director Djoko Siswanto recently said.

?If until March, Rekind?s plan remains unclear, we are going to take back the project and hand it over to PGN (state owned gas distributor PT Perusahaan Gas Negara), the runner-up in the previous auction of the project,? Djoko said.

Rekind won the auction to develop the 225-km pipeline that connects Semarang in Central Java to Cirebon in West Java in 2006. But, the firm has yet to start developing the project.

The pipeline will be connected to the Kepodang-Tambak Lorok gas pipeline which is being built by PGN to transmit gas from the Kepodang field offshore Central Java to PLTGU Tambak Lorok power plant in Semarang.

Editing by Johannes Simbolon