PGN gets $100 million for gas pipeline project

State-owned gas distributor PT Perusahaan Gas Negara Tbk (PGN) has received a US$100 million loan from the ING Bank NV to finance the South Sumatra-West Java (SSWJ) Phase I gas pipeline project.

?The credit agreement was already signed on November 17,? PGN?s corporate secretary Widyatmiko Bapang said in a statement submitted to the Jakarta Stock Exchange on Thursday.

According to Widyatmiko, the loan from ING Bank NV is a bridging loan from the total $225 million loan commitment from ADB Group.

The duration of the loan is five months, starting from the signing of the agreement.

Earlier PGN president director Sutikno said that the management?s priority for this year is to complete the 445 km-long SSWJ phase I gas pipeline project.

? As per the plan, this project will be inaugurated on December 21, 2006. With this, by end of this year, the gas from South Sumatra can enter into the system of gas pipeline in Java,? Sutikno said. (*)