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News Summary: Gresik-Semarang (Gresem) pipeline project will be accelerated to ensure gas supply for industries in Central Java and East Java
SEMARANG, 6 August 2014 – Gresik-Semarang (Gresem) pipeline project will be accelerated to ensure gas supply for industries in Central Java and East Java. Ground breaking is planned to be held in September 2014, and the project is planned will be completed within 18 months, with on stream target in the first quarter of 2016. President Director of PT Pertamina Gas (Pertagas), Hendra Jaya communicated the acceleration plan of Gresem pipeline installation when he met with Governor Central Java, Ganjar Pranowo in Semarang on Wednesday (6/7)
During the meeting Hendra Jaya expressed the readiness of this project implementation, following the Final Investment Decision (FID) issued on third week of June 2014 by holding company of Pertagas, PT Pertamina (Persero). Gas allocation till potential buyers have been prepared. Pertagas got gas allocation from excess gas at East Java, also additional 100 MMSCFD from Pertamina EP Cepu (field Tiung Biru – Jambaran & Cendana) starting 2019 according to the letter of Ministry of Energy and Mineral Resources No. 1851/13 / MEM.M / 2014 dated March 17, 2014.
Central Java and East Java gas demand according to Gas Balances by the Ministry of Energy and Mineral Resources will be reached 416 MMSCFD in 2020. The Gresem pipeline project will fulfill the demand through pipe with a length of 267.22 Km, 28 inch diameter and 500 MMSCFD flow capacity. The pipeline will cross seven cities/counties. For future development the pipeline will be equipped with two utilities stations at Gresik and Cepu.
Governor fully support to the Gresem project. “We support Gresik-Semarang pipeline project in order to provide positive impact for industries, multiplier effect to local communities so that increase local income for infrastructure development that needed by Central Java”.
Hendra Jaya optimist will complete the Gresem project according to defined schedule. “This is strategic project, not only in support Government’s program for oil conversion to gas for industry, also embodies an integrated gas infrastructure in Java as cantilever of national economy,” Hendra said.
Therefore, Hendra Jaya asked support from all stakeholders, both in Central Java and East Java in accelerating installation of Gresem gas pipeline in order to the implementation meet the defined target.
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