Indonesia, Japan to sign exchange note for S. Sumatra-W. Java gas pipeline financing
Friday, January 17 2003 - 02:05 AM WIB
Indonesia and Japan will sign an exchange note in March to pave the way for a loan agreement under which Japan Bank for International Cooperation (JBIC) will partly finance the construction of South Sumatra-West Java gas pipeline, top executive of state gas transmission and distribution firm PGN told Petromindo.Com Friday.
?Indonesian and Japanese governments will sign the exchange note in Bali in March,? PGN president director WMP Simandjuntak said.
Reports said around US$485 million will be needed for constructing the 500-kilometer pipeline between Pagardewa in South Sumatra and Cimanggis in West Java.
The project was planned to commence late 2003.
First gas is expected to flow in 2005 or 2006 with initial capacity of 250 million cubic feet per day (MMCFD), ramping up to 600-700 MMCFD at peak capacity.
PGN will also use part of the proceeds of its initial public offering (IPO) for the pipeline project. The IPO will be launched in the third quarter of 2003. (godang)