The Cost of Transporting Gas via The Cisem-1 Pipeline Will Be Cheaper

An illustration of a gas pipe (photo: dock. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) announced that natural gas flow through the Cirebon - Semarang natural gas transmission pipeline phase 1 will begin today, Friday 17 November.

Head of the Communications, Public Information Services and Cooperation Bureau of the Ministry of Energy and Mineral Resources, Agus Cahyono Adi, said that the government setting the price for transporting gas via this pipeline will simplify the cost of transporting gas.

"With this direct role from the Government, the toll fee or cost of transporting gas via the Cisem-1 Gas Pipeline will be lower," said Aca, Agus' nickname. Friday 17 November.

He continued, the Phase 1 Cisem Project has a length of 60 KM with a pipe diameter of 20 Inch.

With the flow of gas in the Cisem-1 Pipeline, continued Aca, industries in the Kendal Industrial Estate can enjoy a decrease in gas prices. Today's flow as a start will be made to five industries.

After Kendal, the plan is that the Cisem I Pipe will also flow to the Batang Integrated Industrial Zone after the Batang Offtake Station construction is completed at the end of November 2023 which is also through APBN financing.

"This transmission pipe is expected to increase accessibility to natural gas consumers to be able to enjoy more affordable and competitive gas prices, thus encouraging industrial growth and increasing purchasing power," continued Aca.

For information, industrial potential in the Kendal and Batang areas can reach around 40 industries, with a projected initial gas requirement of around 30 mmscfd (first 5 years), and can increase by more than 58 mmscfd.

In addition to industry, the Cisem Pipe will also provide added value for the community through gas for households after the completion of Phase 2 Cisem Pipelines, it is hoped that there will be gas potential for the City Gas Network (Jargas) at least 5 mmscfd or around 300,000 households.

"The flow of Cisem-1 gas is an important milestone in the development of the national natural gas industry, because it will be continued with the construction of the Cisem Phase II pipeline for the Batang to Kandang Haur Timur Cirebon section next year. Then a Dumai-Sei Mangke gas pipeline will also be built with a length of 400 KM. If the project is completed, then the gas transmission pipeline from Sumatra to Java will be fully integrated," concluded Aca.