Welspun wins $84m bid for PGN

Welspun wins $84m bid for PGN

JAKARTA: Welspun Gujarat Stahl Rohren Ltd., an Indian maker of pipes, won a Rp 840.4 billion (US$84 million) order to supply coated pipes to state gas distributor PT Perusahaan Gas Negara (PGN).

The pipes will be used to connect Labuhan Maringgai in Lampung with Muara Bekasi in West Java, Widyatmiko Bapang, PGN corporate secretary said on Friday.

The 168.6 kilometer-long underwater pipeline will have a diameter of 32 inches, Bapang said. The project will start in March 2006 and is expected to finish a year later, he said.

Welspun Gujarat will work with local partner PT South East Asia Pipe Industries, a unit of PT Bakrie & Brothers, a company controlled by the family of Coordinating Minister for the Economy Aburizal Bakrie.

"With the signing of this contract, PGN has contracted all the pipelines needed for South Sumatra-West Java pipelines project," PGN President Director W.M.P Simandjuntak said.

"We're now ready to start the construction, and hopefully can speed up the completion to November 2006." -- Bloomberg