PGN awards contract to SEAPI-Welspun
Friday, October 28 2005 - 03:57 AM WIB
The consortium of South East Asia Pipe Industries (SEAPI) and Welspun Gujarat Stahl Rohren will provide pipes for the construction of 168.5 kilometers, 32-inch pipeline stretching from Labuhan Maringgai, in Lampung to Muara Bekasi, Banten.
The pipeline is part of the South Sumatra-West Java Phase II (SSWJ Phase II) giant project that will deliver gas from South Sumatra to the western part of Java.
SEAPI is the subsidiary of Indonesian firm Bakrie and Brothers linked to Coordinating Minister of the Economy Aburizal Bakrie.
The pipeline to be built under the SSWJ Phase II project has the total length of 678.9 kilometers, including 510.3 kilometers onshore. The investment needed for the project totals $339.95 million. PGN has awarded the contracts to Indonesian firm PT KHI and the consortium of Welspun and Indonesian firm PT Abadi Kuasa Karya to supply pipes for the construction of the onshore section of the pipeline.
?The selection of SEAPI and Welspun as (the provider of the pipes) resulted from a tight and transparent bidding process in accordance with the International Competitive Bidding procedure,? PGN?s corporate secretary Widyatmoko Bapang said in a statement.
As the tender process for the contracts to supply all materials needed for the construction of the onshore part of the pipeline have been completed, the construction of the onshore part of the pipeline could be soon started.
?With regards the physical construction of the Labuhan Maringgai-Muara Bekasi (offshore) section, (the project) can be started in March 2006,? Widyatmoko said. (Godang)