U.S. to fund study of gas pipeline

U.S. to fund study of gas pipeline

JAKARTA: The United States said Monday it will fund a study on the development of a gas pipeline from East Kalimantan to the heavily-populated island of Java.

Under a deal signed with Indonesian officials, the state-owned gas company Perusahaan Gas Negara will receive US$655,000 from the U.S. Trade and Development Agency (TDA).

The U.S. agency said in a statement that the study will examine potential routes of a 32-inch (80 cm) pipeline over 1,100 km from East Kalimantan province in Borneo to Java, Indonesia's most populated island.

The pipeline would transport about one billion cubic feet (29 million cubic meters) of gas a day, the statement said. -- AFP