Pertamina to continue Gresik-Semarang pipeline project

State-owned oil and gas company Pertamina's president director Ari H. Soemarno said he was optimistic that the company would be able to continue the Gresik-Semarang gas pipeline project despite the problem with the land to be used for the project.

"We are sure we will be able to settle the land problem with PT Kereta Api Indonesia (KAI) within two months as required by BPH Migas," he said in Jakarta on Friday.

As part of the plan, Pertamina's subsidiary PT Pertamina EP would develop and operate Gresik-Semarang 250-km pipeline project on the land along the railway track of state-owned railway operator PT KAI. The pipeline is part of national pipeline grid that was planned to connect the islands of Sumatra, Java and Kalimantan. The pipeline will be designed to flow 350-500MMCFD of gas

Last month, however, Pertamina EP's vice president for gas utility Dedi Saroji sent a letter to oil and gas downstream industry regulator BPH Migas saying that KAI had backed out its commitment to cooperate in the development of the gas pipeline. (*)