PGN awards contract for W. Java gas distribution pipes

State-owned gas transmission and distribution PT PGN on Thursday signed an Rp 374 billion contract with the consortium of PT Bakrie Pipe Industries and PT Bumi Kaya Steel Industries, allowing the latter to supply steel for the former's West Java gas pipeline project.

PGN said in a statement that the consortium would provide a total of 272 kilometer pipes with diameter varying from 4 inches to 24 inches including the coaltar enamel and three layer polyethylene coating pipes.

First delivery for the pipes is expected in March 2006, PGN said.

PGN also said it would use the pipes for its gas distribution network in Cikampek, Karawang, Bekasi, Bogor, Jakarta, Tangerang and Banten.

PGN is constructing two transmission pipelines to deliver natural gas from South Sumatra fields to Banten and West Java?s markets. So far, PGN has marketed about 600 million cubic feet per day of gas in West Java, according to the statement.

PGN added that gas delivery under the phase I is expected to commence in November 2006, while the deliver under the phase II will start March 2007. (godang)