South Sumatera-West Java gas pipeline project to begin in April

State owned gas distribution company Perusahaan Gas Negara (PGN) hopes to begin the consruction of 450 kilometer South Sumatera-West Java gas pipeline project in April, next year, Suara Karya reported on Thursday.

PGN's president WMP Simandjuntak said in Jakarta on Wednesday that winners of the tender for engineering, procurement and construction of the first stage of the project, which would cover the construction of gas pipelines linking Pagardewa, Labuhan Maringgai and Cilegon, would be announced by the end of 2005.

"Two main contractors competing for the project are Fero Engineering (JFE) and Nippon Steel," he said after witnessing the handover of compensation payments to residents in Gunung Sugih, Central Lampung.

The second stage of the project would include the construction of gas pipelines from Grissik, South Sumatera, Labuhan Maringgai in Lampung and Muara Tawar in Bekasi, West Java.

Simanjuntak said that the gas pipeline project would also involve six or five subcontractors, which will be selected by the main contractor. He hoped the pipeline project to start commercial operation in March 2006 ahead of July 2006 as initially scheduled.

The South Sumatera-West Java pipeline would later be connected with the East Kalimantan-East Java-West Java pipeline, which PGN plans to consruct within the period between 2005 and 2007. (*)