Chairul Tanjung inaugurates groundbreaking of Gresik-Semarang 271-km gas pipeline

JAKARTA (Rambu Energy) – Coordinating Minister for the Economy, who is also acting Minister for Energy and Mineral Resources, Chairul Tanjung on Wednesday inaugurates the groundbreaking of the construction of Gresik-Semarang gas pipeline with a length of 271 kilometers.

The gas pipeline will have a capacity to transport 500 million standard cubic feet per day (MMSCFD) to East Java and Central Java area. The gas pipeline will be developed by PT Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas company PT Pertamina.

President Director of Pertagas Hendra Jaya said the gas pipeline will be categorized as an open access pipeline, meaning that the gas flow through the pipe will not only limited to gas owned by Pertagas.

The pipeline will be developed by a consortium of PT Wijaya Karya Tbk, PT Remaja Bangun Kencana Kontraktor and PT Kelsri. The construction is expected to last for 18 months and followed by commercial operation (onstream) in the first quarter of 2016.

The cost to develop the pipeline network reaches US$515.7 million.

Pertagas has secured gas supply from Kangean in offshore East Java (30 MMSCFD) in 2016 and gas supply from Tiung Biru field (Cepu) and Cendana field amounting to 100 MMSCFD. It expects also to get gas supply from Alas Tua field (110 MMSCD) starting from 2022. (*)

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