EIB to lend EUR70M to Indonesia for gas transmission project
Thursday, June 22 2000 - 03:00 AM WIB
The European Investment Bank said Wednesday that it will lend EUR70 million to Indonesian state-owned gas company PT Perusahaan Gas Negara for the extension of the gas transmission system in Sumatra and the construction of a gas export line to Singapore.
In a statement, the EIB said the project will have environmental benefits by reducing sulphurous emissions from crude oil.
In addition, "the project fosters regional integration by stimulating trade between two member states of Asean. (The Association of Southeast Asian Nations). Gas sales to Singapore will provide additional export revenues for Indonesia and will help it to recover from the severe economic crisis," the EIB said.
"Singapore will further diversify its imported energy supplies and will benefit from the cost and efficiency gains associated with the use of natural gas," it added. (*)