PGN, JBIC to sign this week loan agreement for S. Sumatra-W. Java gas pipeline
Tuesday, March 25 2003 - 09:59 AM WIB
State gas transmission and distribution company PGN and Japan Bank for International Cooperation (JBIC) will sign an agreement Thursday, under which the latter will provide US$415 million in loan for the construction of South Sumatra-West Java gas pipeline, PGN president director WMP Simandjuntak said Tuesday.
?The loan agreement will be signed on March 27,? Simandjuntak told Petromindo.Com.
Reports said that the construction of the 500-kilometer pipeline required $485 million.
The project was planned to start late this year, and first gas was expected to flow in 2005 or 2006, from Pagardewa village in South Sumatra to West Java?s Cimanggis village.
Initially, the pipeline will have capacity to transmit 250 million cubic feet per day (MMCFD) of gas, ramping up to 600-700 MMCFD at peak capacity. (godang)