PGN signs contract to install Belawan pipeline

State gas distributor PT PGN has signed a contract with a consortium of of PT Hutama Karya, PT Darma Empat Lima, and Ilamaru Jaya to install its gas pipelines from its floating storage and regasification unit in Belawan, North Sumatra.

The company said that the signing of the contract on Thursday was a follow-up to its signing of a pipe procurement contract recently with PT KH Pipe Industries, which will supply PGN with steel pipes of 8 inch, 12 inch and 16 inch, at a total length of 37 kilometers.

Based on the signed contract agreement, the pipe installation work will consist of design, procurement, construction, installation, pre-commissioning, and commissioning of the installed pipelines, as well as building the supportive facilities along the 37 kilometer pipeline linking Belawan and Medan through Batang Kuis and Tanjung Morawa.

PT PGN stated that the pipe installation was the realization of its commitment to meet the rising need of natural gas, which will be mainly used by industries and to generate electricity in North Sumatra area.

During its intensive meetings to communicate its gas distribution plan among the customers and would-be costumers in the province, PT PGN had found that they badly needed the increase of natural gas supply so that they can improve their competitiveness.

The industries there have long complained over the shortage of electricity supply, which had resulted in very frequent blackouts in the province.

Editing by Benget Besalicto Tnb.