PGN to team up with Chinese firm in Kalimantan-Java gas pipeline project
Thursday, September 1 2005 - 03:31 AM WIB
State owned gas distribution company PGN has agreed to team up with CNOOC SES Ltd of China in the construction of a gas transmission pipeline project which will link East Kalimantan and Java, The Jakarta Post reported on Thursday.
The agreement was part of the six memorandum of understandings MOU signed during the visit of Vice President M. Jusuf Kalla to Beijing on Wednesday.
PGN earlier said that the company was finalizing the funding for the gas pipeline project which would cost about US$1.2 billion.
The inter-island pipeline project will transmit gas from East Kalimantan to several industrial areas in Central and East Java. The construction of the project is expected to begin in 2009. (*)