KOGAS signs MoU for Indonesia?s gas pipeline project

South Korea?s energy giant Korea Gas Corporation (KOGAS) signed a memorandum of understanding (MoU) with Indonesia?s South Sumatra provincial administration-owned energy and mining company called PDPE South Sumatra for the construction of 363 km-long gas pipelines worth US$600 million on May 16, on the sidelines of Indonesian President Joko Widodo visit in Korea.

Under the agreement, KOGAS will build a 245 km-long gas pipeline in South Sumatra and a 118 km-long gas pipeline in Bali, and operate and provide maintenance services for 30 years, businesskorea.co.kr reported.

The company plans to conduct a feasibility study first and decide whether to carry forward the project or not depending on results.

By successfully completing the gas pipeline construction project in Indonesia, KOGAS said it will establish friendly cooperative relationships with the Indonesian government and local firms, take the advantageous position in the Indonesian gas infrastructure business market in the future, including LNG terminal, liquefied gas plant and DME projects, and help domestic companies enter the Indonesian market.(*)