JAKARTA (TheInsiderStories) – The ministry of energy and mineral resources (MEMR) will ground the construction project of the Cirebon – Semarang gas transmission pipeline along the 255 kilometers on Friday, said the official yesterday (02/05). The project need costs US$169.41 million.
According to head of the downstream at oil and gas regulatory agency, Fansurullah Asa, in an official statement, the project is part of the gas transmission auction that has been carried out since 2006 and became the National Strategic Program. PT Rekaya Industri will run the project and its targeting to be completed within 24 months.
The development of this project, he continued, will connect the existing gas network, the South Sumatra West Java (SSWJ) pipeline from Palembang in South Sumatra to Lampung and then to West, Central and East Java.
Furthermore, he said, the pipeline will connecting to Dumai in Riau to Sei Mangkei in North Sumatera. Asa explained, the design capacity of this project is 350 to 500 million standard cubic feet per day (MMSCFD) a year with toll fee $0.36 per MMBTU.
The development of the project, he continued, also related to the plan of the government to immediately stop gas supply to Singapore in 2023, which currently flows as much as 300 MMSCFD, stopping this export aims to meet domestic supply.
“The construction of the Cirebon – Semarang pipeline will be very beneficial in supporting the integration of the Trans Sumatra and Java natural gas pipelines,” said the official.
And in the future, he added, the agency will conduct an auction of other projects such as Dumai – Sei Mangke section and the distribution network area which have been proposed by business entities in 193 regions to increase the utilization of natural gas in Indonesia.
“The presence of this gas transmission pipeline is considered to be a sustainable gas energy supply solution to support industrial competitiveness in Java. Moreover, industrial consumers in West and Central Java are very large and have great potential in mobilizing the economic sector in the region,” said the CEO of Rekayasa Industri, Yanuar Budinorman.
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