PGN seeking cheap funds from Bank Mandiri to develop gas pipeline

The state-owned gas company Perum Gas Negara (PGN) is seeking cheap funds from the state-owned giant Bank Mandiri to help finance the development of the US$900 million gas pipeline project which will transfer gas from South Sumatra to the industrial area of West Java starting 2005, according to PGN president WMP Simanjuntak.

The 640-km gas pipeline will allow the state-owned oil and gas firm Pertamina to transfer some 250 million standard cubic feet per day (MMCFD) gas for 20 years starting 2005 to West Java. The pipeline has the capacity to deliver 600 MMCFD.

The World Bank has agreed to partly finance the project.(Godang)