PGN to speed up Duri-Medan gas pipeline project

State-owned gas distribution company PGN plans to speed up the developement of the pipeline project which will supply gas from the company's gas receiving station in Duri, Riau to Medan, North Sumatra, Investor Daily reported on Thursday.

PGN's President Director WMP Simanjuntak said on Wednesday that a number of efforts would be made to enable the pipeline project to go on stream in September 2007, instead of December 2007 as initially scheduled.

PGN is currently preparing the detail of the route and the environmental impact analysys of the 541 kilometer pipeline project which will cost about US$330 million to build.

Simanjuntak said that a number of financial companies have indicated a strong interest to finance the project including BNP Paribas. "At least four local and foreign investors have indicated their interest to finance the project," he said but he was reluctant to unveil the names.

He said that PGN would offer the project to investors under build, operate and transfer (BOT) contract. But he did not elaborate. (*)