Eric Watkins
Senior Correspondent
LOS ANGELES, Aug. 11 -- Asian Development Bank has approved a $75 million loan to finance part of a 661-km natural gas pipeline in Indonesia that would extend from South Sumatra to West Java province. The loan is ADB's second this month for Indonesia's energy sector.
ADB made the loan to PT Perusahaan Gas Negara (PGN), and said it would support additional loans of as much as $125 million provided by other international financial institutions and commercial banks.
The $652.5 million project involves the construction of a pipeline to transport gas from major fields in South Sumatra to the major gas-consuming areas of West Java. The pipeline is one of two PGN is building to address a gas shortage in West Java.
The project is ADB's second nonsovereign guaranteed operation in Indonesia's oil and gas sector. The first one, a $350 million loan to help develop the Tangguh LNG project in Irian Jaya Barat province, was signed on Aug 1.
Contact Eric Watkins at [email protected].