Completion Targeted for 2022, Cirebon-Semarang Gas Transmission Pipelines are Underway

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 058.Pers/04/SJI/2020

Date: 5 February 2020

Completion Targeted for 2022, Cirebon-Semarang Gas Transmission Pipelines are Underway

The government through Ministry of Energy and Mineral Resources (EMR) will soon carry out the construction of gas transmission pipelines Cirebon-Semarang (Cisem) of 255 kilometer (km). Groundbreaking of the project will be done on Friday (7/2).

"Insya Allah, if God wills, on (this) Friday we'll hold the groundbreaking of Cirebon-Semarang gas transmission pipelines," said Head of Downstream Oil and Gas Regulating Agency (BPH Migas), Fanshurullah Asa, to the press in Jakarta, Wednesday (5/2).

The construction of Cisem gas transmission pipelines, explained Fansurullah, is a part of the gas transmission bid auction that has been implemented since 2006 and has become a National Strategic Program (PSN). The project will be carried out by PT Rekayasa Industri (Rekin) using the Cirebon-Semarang toll road section. "Guarantee of gas supplies and differences in economic assumptions (2006 and today) have become the obstacles over the last 13 years," he said.

The transmission pipelines are expected to support the domestic industry needs for gas to boost national economy. "Domestic gas should not be exported, should not be made a commodity, but instead should be made a production factor that moves the economy," Fanshurullah stated.

BPH Migas has targeted the construction to finish in the next 24 months. PT Rekin has also been tasked to finish the project on the agreed time. "PT Rekin must complete the project on 7 February 2022 at the latest," confirmed Fansurullah.

The Cisem gas transmission pipelines will have a design capacity of 350 MMSCFD-500 MMSCFD with investment amount USD169.41 million. The gas transportation tariff (toll fee) is set at USD0.36/MMBTU. "The toll fee from the bid auction is proven to be more efficient, closer to the toll fee of national average, at USD0.35/MMBTU," Fanshurullah explained. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

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