PGN says ready to take over Cirebon-Semarang gas pipeline project
Tuesday, April 29 2014 - 03:57 AM WIB
State-controlled gas distribution firm PT Perusahaan Gas Negara Tbk (PGN) said it was ready to take over the development of a 225 km gas pipeline project linking Cirebon, in West Java, and Semarang, in Central Java, following reports that state-owned engineering firm PT Rekayasa Industri is unable to continue the project amid lingering gas supply uncertainty.
?We?re ready if the government appoints us to develop the Cirebon-Semarang gas pipeline project,? PGN Vice President for Corporate Communications, Ridha Ababil told Petromindo.com Monday.
Meanwhile, Director of Gas at downstream oil and gas authority BPH Migas, Umi Asngadah said that the decision on who would continue to develop the Cirebon-Semarang pipeline project would be made by the government this week. ?Please be patient, within the next 1-2 days it will be decided,? Umi told Petromindo.com.
This portal previously quoted BPH Migas Chairman Andy Noorsaman Sommeng as saying that the authority will re-tender the project after Rekayasa Industri, which first won the tender for the project in 2006, stated its inability to continue the project due to uncertainty over gas supply.
Separately, Vice Minister of Energy and Mineral Resources Susilo Siswoutomo was quoted as saying that the government will ensure the necessary gas supply for the project. ?We?ll ensure the supply of gas for the Cirebon-Semarang pipeline,? he said, without providing further details.
The Semarang-Cirebon is part of the integrated 682.1 km trans-Java pipeline network.
Editing by Reiner Simanjuntak