Rukun Raharja plans $40m gas business expansion

IDX-listed energy provider and distributor PT Rukun Raharja Tbk is planning to develop gas facilities in southern part of Sumatra, and gas pipeline network in East Java as part of expansion drive in the gas business, Investor Daily reported Tuesday.

The paper quoted company Corporate Secretary Cindy Budijono as saying that investment requirement for the projects is estimated at US$35-40 million.

She added that the projects are expected to be completed in the first semester of 2016. ?The two projects are expected to be completed within two years if negotiation and construction progress in line with company plan and target,? she said.

Elsewhere, Cindy said that Rukun Raharja is also currently in negotiations with a number of parties to develop LNG business with investment reaching $120 million.

Rukun Raharja President Director Budiman Parhusip has said recently that the company has set aside $120 million to build LNG production facilities in East Java, Bali, and Balikpapan, with construction expected to start in September and to be completed within three years. (*)