PGN, Rekind to develop Cirebon-Semarang pipeline project
Wednesday, August 6 2014 - 01:15 AM WIB
The Office of the State Minister of State-Owned Enterprises (BUMN) has appointed state-controlled gas distribution firm PT Perusahaan Gas Negara Tbk (PGN) and state-owned engineering firm PT Rekayasa Industri (Rekind) to develop a 225 km gas pipeline project linking Cirebon, in West Java, and Semarang, in Central Java, according to a top official of the downstream authority BPH Migas.
"The Ministry of BUMN has written to UKP4 (Presidential Working Unit for the Supervision and Management of Development) with a copy to us (BPH Migas) that PGN and Rekind have been appointed to carry out the Cirebon-Semarang gas pipeline project," BPH Migas' Chairman Andy Noorsaman Sommeng told Petromindo.com, but added that the appointment of the two firms will still be discussed today by his office today.
Rekind first gained the exclusive right to develop the gas pipeline project in 2006, but returned it to the BPH Migas in March of this year after failing to obtain the necessary gas supply for the project.
The Semarang-Cirebon is part of the integrated 682.1 km trans-Java pipeline network.
In May of this year, CEO of PT Pertamina Gas, the gas distribution unit of state-owned oil and gas firm PT Pertamina, Hendra Jaya claimed it has been instructed by the State Minister of State Owned Enterprises Dahlan Iskan to team up with Rekind to develop the gas pipeline project.
Editing by Reiner Simanjuntak