JBIC agrees to finance PGN?s gas pipeline project
Thursday, December 13 2001 - 02:24 AM WIB
The Japan Bank for International Cooperation (JBIC) has agreed to provide a special yen loan worth US$415 million to the state-owned gas distribution company PGN to help finance the development of gas pipeline from South Sumatra to West Java, according to PGN president WMP Simanjuntak.
Simanjuntak told Petromindo.com via phone that the 40-year loan carries an interest rate of less than 1 percent with a 10-year grace period.
If everything goes well, Simanjuntak said that the loan would be signed in June next year. The construction of the $900 million gas pipeline will start in 2003.
The 640-km gas pipeline will allow the state-owned oil and gas firm Pertamina to transfer some 250 million standard cubic feet per day (MMCFD) gas for 20 years starting 2005 to West Java. The pipeline has the capacity to deliver 600 MMCFD. (Godang)