Three firms win contracts from PGN

JAKARTA: State gas distributor PT Perusahaan Gas Negara (PGN) has awarded contracts amounting to some US$132.4 million to three companies to provide goods and services for the pipeline connecting gas-rich South Sumatra to West Java, enabling the project to start construction in November.

PGN will buy coated pipes from PT KHI Pipe Industries, a subsidiary of state steel producer PT Krakatau Steel, for a 38.88-kilometer pipe segment connecting Muara Baju and Rawamaju, the company said in an emailed statement on Thursday.

The contract is worth $15 million and Rp 29 billion (US$2.79 million).

Indian giant Welspun Gujarat Stahl Rohren Ltd. will supply pipes for the 199.5-kilometer segment connecting Grissik and Pagardewa in a contract worth $92 million and Rp 195 billion, while PT Multi Superindo Manunggal will provide 50 units of fully welded ball valve.

The pipeline is expected to be completed by October next year. -- JP