Jakarta – The gas-in of the Cirebon-Semarang natural gas transmission pipeline phase I (Cisem-1) to Kendal industrial area (KIK), Central Java Province, is an important milestone in the development of the national natural gas industry, said Director General of Oil and Gas of the Ministry of Energy and Mineral Resources (EMR), Tutuka Ariadji during the inauguration of the Government Strategic Project.
The construction of the Cisem-1 gas transmission pipeline is carried out by the Government through state budget financing to encourage growth and added value to the national economy. The Cisem-1 pipeline is managed by the Directorate General of Oil and Gas through LEMIGAS, the research and development body of the ministry in cooperation with Pertagas, a subsidiary of Pertamina. With this direct role of the Government, Ariadji continued, the toll fee, which will later be set by BPH Migas, or the cost of transporting gas through the Cisem-1 gas pipeline can be lower.
The positive impact of a low toll fee is that industries in Kendal Industrial Estate will get cheaper gas prices so that industrial productivity and competitiveness increase, there is an increase in investment, and employment for the people.
Around 40 industries in Kendal and Batang will be able to use and benefit from gas from Cisem-1 Pipeline. The Cisem Pipeline will also provide added value to the community through gas for households.
“After the completion of Cisem Pipeline phase 2, it is expected that there will be gas potential for the City Gas Network (Jargas) of at least 5 MMSCFD or around 300,000 households. Specifically for Kendal alone, there is a Jargas potential of around 10,000 households,” said Ariadji. (Hartatik)
Banner photo: Director General of Oil and Gas (Dirjen Migas) of the Ministry of Energy and Mineral Resources (ESDM), Tutuka Ariadji checks the gas-in of the Cirebon-Semarang natural gas transmission pipeline phase I (Cisem-1) to Kendal industrial area (KIK). (Source: Ministry of Energy and Mineral Resources)
