PGN to install Kalija pipeline soon
Tuesday, February 24 2015 - 07:39 AM WIB
State owned gas distributor PT Perusahaan Gas Negara (PGN) is expected to start installing underwater pipeline linking the Kepodang field offshore Central Java and PLTGU Tambak Lorok power plant in the province?s capital of Semarang.
?We are optimistic that the installation of the pipeline can start prior to March,? Djoko Siswanto, Director of Natural Gas at downstream regulator BPH Migas, said on Monday.
According to Djoko, the Directorate General of Sea Transportation has issued permit for the installation and Minister of Transportation Ignasius Yonan is expected to sign the permit in a matter of days.
The pipeline, also known as Kalija I project, is being developed to channel gas from the Kepodang field owned by Malaysian firm Petronas Carigali. It will form part of the giant pipeline planned to be built from Kalimantan and Central Java. The Kalija I pipeline will also connect with the planned Semarang-Cirebon pipeline, which state owned engineering firm PT Rekaya Industri (Rekind) is supposed to build.
BPH Migas awarded the Semarang-Cirebon project to Rekind back in 2006. However, the firm has yet to start building the pipeline. BPH Migas has warned if the firm failed to realize the project prior to March, the project will be taken back from the firm and transferred to PGN, the runner-up in the tender for the project.
Editing by Johannes Simbolon