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PGN lets pipe contract for West Java pipeline

Eric Watkins
Senior Correspondent

LOS ANGELES, Dec. 29 -- Indonesia's state-owned gas utility PT Perusahaan Gas Negara (PGN) has awarded a $38.1 million pipe supply contract to a consortium of PT Bakrie Pipe Industries and PT Bumi Kaya Steel Industries.

The companies will supply 272 km of 4-in. through 24-in. pipe to be used in a natural gas distribution system in West Java that will be installed in areas around Cikampek, Karawang, Bekasi, Bogor, Jakarta, Tangerang, and Banten.

PGN plans to connect the distribution network to its Gresik and Pagardewa plants in South Sumatra, enabling the supply of 650 MMscfd of natural gas.

First pipe deliveries are expected to arrive by March 2006.

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