KHI Provides Steel For PGN’s Gas Pipe Project

Administrator | 19 September 2007

JAKARTA (Bisnis): PT KHI Pipe Industries has been appointed as a supplier of steel pipes worth IDR1.22 trillion for the construction of Phase II of the PGN South Sumatra-West Java (SSWJ) gas pipeline transmission project on the Grissik-Tegal Gede route. The contract for the procurement of pipes to build a pipeline of 272 km with a diameter of 32 inches was signed yesterday by the management of PT KHI and PT PGN, witnessed by the Minister of Industry Andung A. Nitimihardja.

President Director of PT Perusahaan Gas Negara (PGN) WMP Simandjuntak said this project will initiate the construction of the second part of the transmission pipeline which will connect Pagardewa-Labuhan Maringgai in South Sumatra.

“We have signed a supply contract for the steel pipe that will be used for Pagardewa-Labuhan Maringgai. It will be built in November [2005], ”he said yesterday.

To carry out the contract, one of the subsidiaries of PT Krakatau Steel Indonesia, is known to have collaborated with three other companies in the consortium, namely PT Indal Steel Pipe, PT Bumi Kaya Steel Industries, and PT Steel Pipe Industry of Indonesia.

The construction of the pipeline itself is needed to flow gas from South Sumatra to West Java in order to increase supply to household consumers and industries in Java.

“The gas will be streamed starting next November [2006]. For the first supply, 50 million cubic feet per day and then increased to 170 million feet, until finally 400 million cubic feet per day flat, “added Simandjuntak.

PGN corporate secretary Widyatmiko Bapang explained that the pipeline procurement tender process had been carried out since last March by inviting 24 companies.

However, he continued, at the tender offer submission stage there were only five participants who stated that they met the requirements, namely KHI, Daewoo International Corp, PT Abadi Kuasa Karya, China Petroleum Technology & Development Corp, and PT Trihasta Buana.

Meanwhile, PGN is also processing tenders for other parts of the SSWJ II project, namely the Grissik-Pagardewa route and the Labuhan Maringgai-Muara Bekasi offshore pipeline.

According to Simandjuntak, the pipeline construction tender for Grissik-Pagardewa was opened on June 6. Meanwhile, the underwater pipeline will be opened on July 1. (06)

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