PGN to start construction of Panaran-Tanjung Uncang pipeline in April

State-controlled gas distribution company PT Perusahaan Gas Negara (PGN) is expected to start the construction of the Panaran-Tanjung Uncang gas pipeline in Batam, Riau Islands, in April of this year. The Rp 183 billion project is to anticipate gas supply from Premier Oil through an agreement between state electricity firm PT Perusahaan Listrik Negara (PLN) and Universal Batam Energy.

Heri Yusuf, Corporate Secretary of PGN said that the contract for the construction of the 18 km pipeline was signed with Krakatau Engineering in February, which covers engineering, procurement and construction works.

?The gas pipeline project with a diameter of 16 inches is targeted to be completed and operational in the first quarter of 2014,? he said Sunday.

He said that the pipes to be used in the project are produced by PT Krakatau Heavy Industries and PT Steel Pipe Industries of Indonesia.

The development of the Panaran-Tanjung Uncang pipeline is part of the efforts by PGN to continue expands its gas infrastructure in Indonesia. This is also part of efforts to build synergy in the management gas supply chain at home.

PGN is also currently in the process of completing a number of gas infrastructure projects in the country including the US$250-300 million floating storage regasification unit (FSRU) in Lampung, and upgrading of the Muara Bekasi Gas Station. The company also plans to build compressor station to increase the gas capacity of the SSWJ pipeline to anticipate the flow of gas from Lampung.

Editing by Reiner Simanjuntak