PGN awards pipeline project to Malaysia?s Hicom, Netherland?s Nacap

State gas distribution company PGN on Tuesday said that the company had selected Hicom Petro-Pipes Sdn. Bhd., Malaysia?s largest pipe manufacturer to supply pipe for Sakernan-Kuala Tungkal pipeline segment, which is part of the pipeline transmission linking South Sumatra to Singapore.

PGN also selected Dutch contractor Nacap Nederland BV to lay the 78-kilometer pipeline, according to PGN?s president WMP Simanjuntak. He however said that the final say in the selection would be in the hand of Asian Development Bank, which partly finances the pipeline project.

He did not disclose the value of the project or when the work would commence.

He said the tender for another segment would be opened today.

PGN had divided South Sumatra-Singapore pipeline construction into five segments with an estimated total project value of US$ 470 million.

PGN, which is currently in the process of selecting strategic partner to raise money for the project, is required to complete the pipeline by August 2003, when the first delivery of the 350 MMCFD of gas to Singapore Power would commence.(godang)