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BPH Migas seeks assurance from Rekind over Cirebon-Semarang gas pipeline project

JAKARTA (rambuenergy.com) – The Indonesian downstream oil and gas regulator BPH Migas will seek clarification from PT Rekayasa Industri (Rekind) over its plan to team up with PT Pertamina Gas (Pertagas) in developing the long-awaited Cirebon-Semarang gas pipeline project.

Rekind won a tender on March 21, 2006 to develop a 225-kilometers gas pipeline that will link Semarang town in Central Java to Cirebon town in West Java. PT Bakrie and Brothers (BNBR) was the second preferred winner and PT Perusahaan Gas Negara (PGN) was the third preferred winner. The Pertamina’s subsidiary was not on the list.

Rekind however has yet to start the construction on the grounds that it is yet to get gas supply assurance from the government, although the government over the past few years has urged Rekind to start the project.

Rekind earlier expected to get gas supply from the planned floating storage and regasification (FSRU) unit to be developed in offshore Semarang, in northern Java coast.

Recently, media reports that Rekind has reached an agreement to team up with Pertagas to develop the Semarang-Cirebon gas pipeline.

“I heard about the plan, but there were no (formal) report yet,” Director for Gas of BPH Migas Djoko Siswanto was quoted by Bisnis Indonesia at the weekend.

BPH Migas has set deadline until end March 2015 to declare its readiness to develop the project, otherwise it will be handed over to the second or third preferred winner. Since the deadline has passed, BPH Migas has taken initiative to hold meeting scheduled for April 7, 2015.

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