PGN will soon launch new tender for gas pipeline

The state owned gas distribution company Perusahaan Gas Negara (PGN) will soon open tender for the development of the first section of the gas pipeline project linking Duri, Dumai and Medan, Bisnis Indonesia reported on Thursday.

PGN's President Director WMP Simanjuntak said in Jakarta on Wednesday that the tender would be launched in April this year to ensure that the construction of the pipeline could be completed in 2007 as scheduled.

He said that PGN was finalizing the negotiations on the financing of the project, which would cost about US$393 million to build. "We hope it could be settled soon so that we can open the tender in April," he added.

The Duri-Dumai-Medan pipeline is one of PGN's gas pipeline projects offered to both foreign and local investors during the recent Infrastructure Summit. Othe projects offered in the investor forum included the development of East Kalimantan-East Java gas pipelines and East Java-West Java gas pipeline. (*)