PGN unit signs pipeline project deal with TL Offshore-Encona
Friday, January 23 2015 - 01:53 AM WIB
IDX-listed gas distribution firm PT PGN Tbk said Thursday that it through its 99 percent-owned subsidiary PT PGAS Solution signed on January 20 an agreement with TL Offshore-Encona consortium for the installation of offshore and onshore pipes in the phase 1 of the Kalimantan-Java (Kalija) gas pipeline project.
TL Offshore is an engineering and construction subsidiary of Malaysia?s Sapura Kencana Petroleum Bhd, an oil field services provider.
PT Kalimantan Java Gas, which is 80 percent owned by PGN and 20 percent by PT Bakrie & Brothers Tbk, is developing the Kalija gas pipeline project, which is divided into two phases.
The first phase of 207 km pipeline, which links the Kepodang gas field, offshore Central Java, with the combined cycle Tambak Lorok power plant, located in the same province, is expected to be completed in the first quarter of this year.
The Kalija I pipeline will then be connected with gas fields in East Kalimantan Province via a second 1,200 Km pipeline.
Editing by Reiner Simanjuntak