Rekind signs agreement with C. Java firm on gas pipeline project
Friday, September 22 2017 - 01:34 AM WIB
State-owned engineering and construction company PT Rekayasa Industri (Rekind) signed on Wednesday a MoU with PT Sarana Pembangunan Jawa Tengah (SPJT), a company owned by the Central Java provincial administration, on cooperation in the planned Semarang-Cirebon gas pipeline project.
The Central Java administration said in a statement that under the agreement, SPJT will act as coordinator of the off-takers of gas from the pipeline.
Rekind last month also signed a similar MoU with PT Energi Negeri Mandiri, a subsidiary of West Java provincial-owned company PT Migas Hulu Jabar.
According to the Central Java administration statement, construction of the 235-km gas pipeline linking Semarang in Central Java and Cirebon in West Java will take about 33 months to complete, and is targeted to start operation in 2020, distributing gas to industries in the regions. Gas for the 250-300 mmscfd capacity pipeline will be sourced from Eni?s Jangkrik LNG facility.
The statement said that on September 12, a meeting was held between Rekind and potential gas off-takers in West Java. A similar gathering will also be held with potential gas off-takers in Central Java.
Rekind first gained the exclusive right to develop the 235-km gas pipeline project in 2006, but the project has suffered lengthy delays due to the company failing to obtain the necessary gas supply and off-takers of the piped gas.
The Semarang-Cirebon is part of the integrated 682.1 km trans-Java pipeline network.
Editing by Reiner Simanjuntak