KHI supplies gas pipes to PGN in Northern Sumatra

State gas distributor PT PGN has signed a gas pipe procurement contract with PT KHI Pipe Industries, which will supply gas pipes for the development of PGN's gas pipelines in northern Sumatra.

?The signing of the agreeement is part of our commitment to realize gas supply for our customers in Indonesia, particularly in Medan and surrounding areas," said PGN Corporate Secretary Heri Yusup in Jakarta on Tuesday.

Based on the contract, KHI will supply PGN with 16 inch pipes at a length of 11 kilometer and 12 inch at a length of 22 kilometer. The pipes to be supplied have met the API 5L Grade B standard, which is internationally recognized.

He said the gas facility development was part of the plan to improve the energy security in northern Sumatra and in line with the presidential decree No 1/ 2010 on the acceleration of national development priorities.

PGN is now ready to distribute natural gas from its floating storage and regassification unit in Belawan to customers in the area through its onshore receiving terminals.

According to him PGN will meet customers and prospective customers in the area to inform them on the gas distribution plan, which will be mostly used to generate electricity and expected to help push up the economic growth in northern Sumatra.

Editing by Benget Besalicto Tnb.