PGN to tender pipeline construction work early next year
Tuesday, November 14 2000 - 03:00 AM WIB
State owned gas company PT Perusahaan Gas Negara (PGN) said Monday it would start bidding for the construction of the 497 kilometers gas pipeline network linking Grissik in South Sumatera to Batam and Singapore in January next year.
The company's president Qoyum Tjandranegara said in a meeting with the House of Representative commission VIII for energy, mines, science, technology, and environment that the pipeline project including the procurement and installment its compressor would cost some US$ 470 million. Most of the financing will be provided by ADB, JBIC, and EIB.
The project, said Qoyum, was expected to finish in early 2003.
He said creditor would be involved in every step of the contractor selection.
"Every step of the tender process and contractors selection, would have to be agreed by creditors," said Qoyum.
"Currently, there are five contractors have expressed their interest to compete in the bidding, namely Hyundai from South Korea, Mc Dermott and Global from USA, Nippon Steel from Japan and Siapem from Italy," added Qoyum.
He further said the local pipe manufacturers would also be eligible to compete provided that their products meet the specification set by PGN.
The pipeline network, once completed, would transmit natural gas from South Sumatera and Jambi to Singapore under 20 years contract between Pertamina and Singapore Gas Supply Private limited. The gas will be supplied from three production-sharing contracts (PSCs) in Sumatra, which are respectively being operated by Gulf Indonesia Resource Grissik, Santa Fe Energy Resources Jabung and Gulf Indonesia Resources South Jambi. It will also enable Pertamina to market its natural gas to Batam.
Pertamina and the three PSCs will supply 150 million cubic feet per day (MMCFD) of gas beginning in 2003 and increasing to a peak rate of 350 MMSCFD in 2005. (Alex)