Tanjung Jelita and IOEC will build 573-km-long pipeline

Local contractor PT Tanjung Jelita and its foreign partner Iranian Offshore Engineering and Construction (IOEC) will build the 573 km-long off shore gas transmission pipeline from Pagar Dewa in South Sumatra to Batam Island, the Bisnis Indonesia newspaper reported in its Saturday edition.

PT Tanjung Jelita’s director R.J. Nathan said that the pipeline project’s work was under progress and had already entered into the phase of material procurement.

“Technically speaking, we are ready for the beginning of the work, the construction work under the sea and we have already ordered pipelines. The pipes will likely to arrive in Batam in September 2006,” Nathan told the Bisnis Indonesia in Batam on Friday.

Nathan said his company entered into a partnership with IOEC to build this 573 km –long offshore gas pipeline from Pagar Dewa to Batam Island,.

The pipeline, according to Nathan, will be constructed in two phases. During the first phase both the companies will built 266-km-long pipeline and in the second phase the remaining 300-km-long will be built.

“We will be investing US$845 million and this money will coming from our own sources,” Nathan said.

Once the pipeline is finished, the gas will be supplied to the 3x25 megawatt gas-fired power plant in Panaran and the households as well as industries in Batam.(*)