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Govt signs Rp 1 trillion deal on CISEM gas pipeline with Elnusa
The first section of the CISEM pipeline is to run from Semarang to Batang and cost Rp 1.17 trillion (US$79 million).
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PT Elnusa executive Eddy Herman Harun (left) and Energy and Mineral Resources Ministry official Irine Yulianingsih sign a contract on the CISEM pipeline project in Jakarta on May 17, 2022. (Energy and Mineral Resources Ministry/-)
T
he Energy and Mineral Resources Ministry has signed a contract with publicly listed oil and gas service provider PT Elnusa, a subsidiary of state-owned oil giant Pertamina, on the construction of the Cirebon-Semarang (CISEM) natural gas pipeline.
The project is carried out in anticipation of rising gas demand in East and Central Java.
As explained during the signing ceremony on Tuesday, the first phase of the project is valued at Rp 1.17 trillion (US$79 million) for a segment in Central Java that will extend from the provincial capital of Semarang to Batang, where an industrial zone is under development.
"Adequate and sustainable infrastructure is urgently needed to support national development, improve the national economy [and] public welfare and increase Indonesia's global competitiveness," energy ministry Oil and Gas Director General Tutuka Ariadji said during the ceremony.
Read also: SKK Migas expects 12 upstream oil and gas projects to come onstream this year
The contract stipulates that the infrastructure includes a 20-inch pipe to transmit 116-235 million standard cubic feet per day (MMSCFD) of natural gas from Tambakrejo in Semarang along a distance of around 62 kilometers to Batang.
The energy ministry’s procurement unit awarded the project to Elnusa on Dec. 4, 2021, under a multiyear contract.
