Rekayasa Industri may delay Cirebon-Semarang pipeline project
Friday, January 12 2007 - 01:06 AM WIB
Rekin's president director Triharyo Indrawan said in Jakarta Thursday that the banks which were involved in the funding of the projects would not disburse the funds if there was no certainty in the gas supply.
"Just like Pertamina, we cannot go ahead with the project until we have secured sufficient gas supply," he said.
Earlier, Pertamina's president director Ari Soemarno also said that the construction of the Gresik-Semarang gas pipeline could not be started this year as scheduled because Pertamina had not yet secured sufficient gas supply for the gas pipeline.
Ari said that Pertamina had asked the government to extend the special rights to build the pipeline for another one year.
On March 1, 2006, downstream oil and gas regulator BPH Migas declared state oil and gas company Pertamina and State engineering firm PT. Rekayasa Industri winners for special right to develop and operate two pipeline segments that will connect East Java to West Java.
The first Gresik-Semarang 250-km pipeline section is given to state oil and gas company Pertamina, which offered toll fee of 25US$ cents per MMBTU and the 230-km Semarang-Cirebon section was given to Rekayasa Industri which offered toll fee of 36 cents per MMBTU.
The two companies will be given 25-years right to operate the pipeline segments. 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. (godang)