PGN provides additional $250m loan for Kalija

IDX-listed gas distribution firm PT PGN Tbk said that it has provided an additional US$250 million loan for PT Kalimantan Jawa Gas (Kalija) to be used to finance the completion of a 207 Km gas pipeline project in Central Java.

PGN said in a statement over the weekend that the extra loan, signed on November 11 of this year, was part of a loan agreement made in 2013, which eventually landed the company with an 80 percent stake in PT Kalija following a debt to equity conversion.

PT Kalija, which is 20 percent owned by PT Bakrie and Brothers Tbk, has been assigned to develop the Kalija gas pipeline project, which is divided into two phases, the first of which is the 207 Km pipeline linking the Kepodang gas field, offshore Central Java, with the combined cycle Tambak Lorok power plant, located in the same province. PGN has previously said that first phase project is expected to be completed in the first quarter of 2015.

The Kalija I pipeline will then be connected with gas fields in East Kalimantan Province via a second 1,200 Km pipeline.

Editing by Reiner Simanjuntak