PGN to go to Europe to seek for funds for pipeline project
Wednesday, May 30 2001 - 07:30 AM WIB
State gas company PT Perusahaan Gas Negara (PGN) is seeking to find alternative financing from Europe for its pipeline project linking South Sumatra and Java as financing from Japan remains in limbo.
The company's president Qoyum Tjandranegara told Petromindo.com on the sidelines of a seminar on gas Tuesday that he planned to go to Europe next week to seek funding from European financiers.
He, however, decline to name the financiers.
PGN has planned to build a 640-kilometers gas pipeline capable of transporting 500 million cubic feet of gas per day from the gas rich province of South Sumatra and the industrial province of West Java.
PGN needs some US$ 650 million to finance the project and the Japanese government had initially agreed to provide soft loan for the project.
However, Qoyum said, uncertainties in Indonesian political conditions caused the Japanese government to suspend the talk.
Qoyum said the project is vital for the security of gas supply to West Java.
Supplies from the province's gas suppliers would start to decline, he said, adding by 2004, there would be at least some 350 MMFCFD of gas shortage in the province. (alex)