Bakrie unit secures pipe deal from PGN

Bakrie unit secures pipe deal from PGN

PT Bakrie & Brothers, a diversified group with companies in the
infrastructure, plantation, property and telecommunications
sectors, announced on Tuesday that its unit and partner had
sealed a contract worth Rp 374 billion (US$38.1 million).

The contract was hammered out between state-owned gas utility
firm PT Perusahaan Gas Negara (PGN) and a consortium consisting
of PT Bakrie Pipe Industries and PT Bumi Kaya Steel Industries,
in which the latter would supply gas pipelines.

The pipelines will be used for the construction of PGN's gas
distribution facilities in West Java, which will have a total
length of around 272 kilometers and diameter of between 4 inches
and 24 inches.

"PGN and the consortium officially inked the contract on Dec.
22," said Bakrie & Brothers spokesman Lalu Mara Satria Wangsa in
a press statement.

Publicly listed Bakrie & Brothers is owned by the family of
Coordinating Minister for People's Welfare Aburizal Bakrie.

Efforts to confirm whether or not the contract had gone
through a tender process were unsuccessful.

The first delivery of the pipelines is expected to arrive by
March next year, and will be installed in distribution areas
around Cikampek, Karawang, Bekasi, Bogor, Jakarta, Tangerang and
Banten.

PGN plans to eventually connect this distribution network with
its transmission facilities in South Sumatra. If connected, the
company will be able to supply 650 million standard cubic feet
per day from the Gresik and Pagardewa plants in South Sumatra. --
JP