PGN denies KPPU`s accusation on conspiracy in Kalija i project

PGN denies KPPU`s accusation on conspiracy in Kalija i project


Jakarta (ANTARA News) - State-owned gas firm, PT Perusahaan Gas Negara Tbk (PGN), has denied accusations of the Business Competition Supervisory Commission (KPPU) on alleged conspiracy in the Kalimantan-Java gas pipeline project (Kalija) I, which was worked on by its subsidiary, PT PGAS Solution in 2014.

PT PGAS Solution Corporate Secretary Fathurahman in a statement here on Monday affirmed the stages of determining the winner of the Kalija I gas pipeline project operator has referred to the procedures in accordance with the prevailing laws and regulations.

"The procurement of EPC (engineering, procurement and construction) construction of the operation of the Kepodang-Tambak Lorok Semarang (Kalija I) section is in accordance with the laws and regulations, by prioritizing the principle of efficiency and opening opportunities for implementing partners to participate," he stated.

KPPU will examine the Kalija I project in the Kepodang-Tambak Lorok Semarang section along 207 kilometers.

The institution, based on case report Number 11 / KPPU-L / 2018, suspects a tender arrangement in the EPC procurement on the project.

Fathurahman added that for the EPC procurement process, TL Offshore-Encona Consortium had been appointed as the implementing partner of the work.

The winner of the work has been determined through the evaluation phase, which is applied equally to the other prospective implementing partners.

"We can prove this process, and it can provide an overview and proof that the appointment of working partner was done in accordance with the principles of fair business competition," he remarked.

Fathurahman also revealed that PGAS Solution was appointed by the government to immediately complete the Kalija I project, which had been stalled for approximately eight years.

With the completion of the project, there would be considerable inefficiency in electricity production, because the Tambak Lorok PLTGU power plant at that time had to be forced to use fuel oil (BBM), as the gas from Kepodang Field could not be distributed due to the lack of gas pipeline, causing an impact on the fuel subsidy at that time.

Initially, the Kalija I pipeline project was worked on by PT Bakrie and Brothers, but because it was not completed, PGN was appointed to take over 80 percent of the project.

"In August 2015, the 200-kilometer offshore gas pipeline and 1.8-kilometer onshore pipeline were successfully completed on time without any hindrances. Therefore, the Tambak Lorok PLTGU can operate using natural gas, which can contribute to enormous savings, and the people around Semarang can enjoy the great benefits of natural gas distribution," he remarked.

The Kalija I project is a commitment of PT PGAS Solution to professionally continue to develop natural gas by continuously adding gas pipelines.

"Public support is needed so that the goodness of natural gas energy can immediately be enjoyed by people. Besides saving on energy expenditure, the use of natural gas is safer and more practical," Fathurahman concluded.

Reporting by Kelik Dewanto
Editing by Eliswan