Rekind partners with Pertagas to build Semarang pipeline
Wednesday, June 20 2012 - 01:22 AM WIB
Rekind Corporate Secretary Wilka Osca said that the development had not been started yet. But a study to determine the right of way (ROW) of the pipeline had been finalized. If the gas supply secured then it will be followed with the process of construction.
?We?ve completed the study to determine the route of the pipeline. But we haven?t yet secured the gas supply. That?s why we partner with Pertagas to tackle the problem. We want it to be realized in 2014-2015,? he told Investor Daily in Jakarta on Tuesday.
According to Wilka, Rekind and Pertagas also have signed a memorandum of understanding (MOU) to establish a joint venture that will develop and operate the gas pipeline. But he stated that the cooperation would not mean that Pertagas would take over the gas pipeline project. It is merely aimed at facilitating the development of the project.
?We have the competency to build the pipeline. We?ve been successful in developing geothermal pipeline, subsea gas pipeline of South Sumatra West Java (SSWJ),? he said.
Qoyum Tjandranegara , a member of the downstream regulator BPH Migas Committee, said that so far winners of three tenders of pipeline projects that had been announced in 2006 still kept their commitment to build. The three winners are Pertamina for Semarang- Gresik, Rekind for Semarang-Cirebon, and PT Bakrie & Brothers Tbk for Kalimantan-Jawa (Kalija).
?If the Kalija project finalized by Bakrie, the pipeline will connect to other transmission pipelines in Java, through the Semarang-Cirebon pipeline built by Rekind, and Semarang-Gresik pipeline built by PT Pertamina. But perhaps the Semarang-Gresik pipeline that will be built first as it already had gas supply from Cepu,? said Qoyum.
Previously, Pertagas President Director Gunung Sardjono Hadi said that his company was ready to take over the development of the Semarang-Cirebon pipeline that will distribute gas at between 400 and 500 mmscfd. It was only waiting for an approval from the ministry of state enterprises (BUMN).
?We?re ready to build the Semarang-Cirebon pipeline owned by Rekind. Rekind has no capability. We?ve even prepared a joint venture. We want a majority sharehownership,? he said.
The Semarang-Cirebon is part of the integrated 682.1 km trans-Java pipeline network worth US$ 1,12 billion, which consist of three main projects, namely western Java at the value of US$ 300 million, northern part project worth US$ 400 million, and eastern Java project worth US$ 360 million.(*)