Rekind says it?s still committed to develop Cirebon-Semarang gas pipeline project
Saturday, August 19 2017 - 04:19 AM WIB
State-owned engineering company PT Rekayasa Industri (Rekind) said it is still committed to develop the long-delayed 235-km Cirebon-Semarang gas pipeline project, Bisnis Indonesia reported on Saturday.
The paper quoted Rekind Director of Development Strategy and Risk Management, Yanuar Budinorman as saying that the company is still looking for potential gas off-takers in Central Java and West Java as well as the required gas source for the project.
He expected that the company hopes to submit the list of potential off-takers at the end of this month to the Ministry of Energy and Mineral Resources. The government will then help Rekind to get the gas sources, which may come from nearby fields or via LNG shipment.
He added that afterwards, Rekind will report to the downstream oil and gas authority BPH Migas to reaffirm its commitment, but said it will require a new study for resuming the project to taki into account expected higher investment cost than the initial estimate of US$400 million.
BPH Migas Chief Fanshurallah Asa has earlier summoned Rekind over prolonged delay of the Cirebon-Semarang gas pipeline project, and questioned the company?s commitment in the project.
Rekind first gained the exclusive right to develop the gas pipeline project in 2006, but returned it to the BPH Migas in March of 2014 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. (*)