Nova Corp eyes Sumatra natural gas pipeline<\/p>\n
JAKARTA (JP): Nova Corporation of Canada, whose activities
\ninclude the provision of natural gas and petrochemicals services,
\nwill bid for a contract to construct a 540-kilometer natural gas
\ntransmission pipeline in Sumatra, the company's chief executive
\nofficer said yesterday.<\/p>\n
J.E. Newall said the project consists of the construction of a
\npipeline connecting Asamera, Duri and Batam in central and
\nsouthern Sumatra and Riau.<\/p>\n
The project involves US$600 million in investments, of which
\n75 percent will come from the Asian Development Bank, the
\nEuropean Investment Bank and state-owned PT Gas Negara, while the
\nremaining 25 percent will come from the winner of the bid, he
\nsaid.<\/p>\n
Newall was accompanied yesterday by Harry Van Zeist, Nova Gas
\nInternational's (NGI's) regional director for the Asia-Pacific, and
\nJohn F. Sharp, NGI's business development manager for Indonesia.<\/p>\n
Gas Negara announced in August that it plans to construct a
\n$1.1 billion gas pipeline system, totaling 1,040 km in length,
\nfrom Sumatra to West Java.<\/p>\n
The pipelines will consist of a 540-km line between southern
\nand central Sumatra and another 500-km line from southern Sumatra
\nto West Java.<\/p>\n
The pipelines will be part of the country's integrated
\npipeline system, planned to cover 2,195 km from Riau province to
\nPorong in East Java. Construction is scheduled to be completed by
\n2006.<\/p>\n
The construction of the Asamera-Duri-Batam pipeline is
\nexpected to be completed in October 1997, while the Sumatra-West
\nJava line is scheduled for completion in 2000.<\/p>\n
Newall said that if Nova wins the project, the company will
\nprovide technology-transfer, training and guidelines for project
\nexecution, operations and maintenance in the natural gas sector,
\nas well as constructing the pipelines.<\/p>\n
He said the winner of the bid, which will later join hands
\nwith Gas Negara in the construction of the pipelines, will be
\nannounced next July.<\/p>\n
Gas Negara president Qoyum Tjandranegara said in August that
\nother companies intending to bid for the project included British
\nGas, Gas du France and Technicorp of the United States.<\/p>\n
Newall said Nova was also eying possible investments in
\nIndonesia's petrochemical industry. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/nova-corp-eyes-sumatra-natural-gas-pipeline-1447893297",
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"sponsor": "Okusi Associates",
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