PT PGN to build pipelines to transport gas to Singapore
Thursday, September 21 2000 - 02:00 AM WIB
State-owned gas company PT Perusahaan Gas Negara (PT PGN) plans to build a gas pipeline linking Sumatra and Singapore via Batam this year.
Company spokesman Heri Siswady said the US$400 million project will entirely be financed with a loan from the Asia Development Bank (ADB) and the European Investment Bank (EIB).
"PGN will spend not a cent on the project," Heri said, adding that the project would be its first this year.
He said PGN may need funds only when it builds gas installations in Bontang and in Java including Jakarta.
He said Indonesia's domestic gas sales were expected to increase this year to an estimated US$240.79 million from US$210.64 million in 1999. In 2001, the sales value is estimated to rise to US$317.5 million and to US$441.6 million in 2002 and US$541.4 million in 2003.
He said the sales estimates were based on the growth in the number of subscribers to the current 52,156 from less than 50,000 in 1999.
He said the company had completed and operated gas pipeline networks in Sumatra and distribution networks in Jakarta, Bogor, Cirebon, Surabaya, Medan and Palembang.
The company has so built 5,115km of pipelines in Indonesia. (*)