PGN to build 33km pipeline in N. Sumatra

Despite uncertainty over the source of the supply, state gas distributor PT Perusahaan Gas Negara (PGN) is going ahead with its 33-km pipeline project in Medan, North Sumatra worth hundreds of billion rupiahs.

General Manager of PGN SBU III, which covers North Sumatra, Mujiono said the pipeline project that will link Stasiun Pasar IX and Belawan is slated for completion by March 2013, as quoted by Investor Daily.

?We pay a lot of attention on North Sumatra because of its great potentials. Despite uncertainty over the source of the gas supply, PGN will still build the infrastructure,? he said on Wednesday in Medan.

He added the supply may come from Arun LNG in Aceh. If it is materialized, a new line of pipe network will be built to add to the 33-km pipeline project. At present, he said, gas production for North Sumatra only amounts to 11-12 mmbtu as against industrial needs, excluding power plants belonging to state owned utility firm PT Perusahaan Listrik Negara (PLN), of around 48 mmbtu.(*)