KHI Pipe Seeks Opportunities In Infrastructure

JAKARTA. PT KHI Pipe Industries predicts that the oil and gas (oil and gas) business cannot be expected until next year. Hence, next year the subsidiary, PT Krakatau Steel Tbk (KRAS), will take control of this year’s infrastructure project, which will reach 60-70 percent.

Currently, KHI Pipe is targeting the procurement of pipes for a number of port and airport (airport) projects in Sumatra, Java and eastern Indonesia. Although the contract value is not as big as the oil and gas project, the company is quite relieved that the infrastructure contract is able to move the wheels of production at the factory in Cilegon, Banten.

Apart from government infrastructure projects, KHI Pipe will hook the export market. Just so you know, so far this year there has not been a single export sales record. “Next year we will try to export countries to Southeast Asia, such as Malaysia and Singapore,” said Purwono Widodo, President Director of PT KHI Pipe Industries, when contacted by KONTAN, Monday (10/10).

Apart from these two efforts, KHI Pipe cannot handle many cases of sluggish oil and gas pipeline business. However, the company is still hunting for contracts. Currently, KHI Pipe is waiting for news on the winner of the Grissik-Pusri gas pipeline tender from Pertamina Gas (Pertagas). The 160 km long gas pipeline requires 30,000 tons of pipelines.

This week is the pricing stage. As the lowest price bidder, KHI Pipe is optimistic that it will be selected as the winner of the tender. The company even estimates the delivery time. Half of the pipe contract volume will be shipped in November-December 2016. Then, the other half will be shipped next year.

In addition to the Pertagas pipeline tender, KHI Pipe is currently participating in an engineering, procurement and construction (EPC) tender for a steam power plant (PLTU) in Kalimantan. The tender value is smaller than the Pertagas pipeline tender.

Selebihnya, belum ada tender proyek pipa migas bernilai jumbo yang bisa diperebutkan. Tak terkecuali, proyek pipa baja proyek migas Blok Masela di Maluku Selatan yang kemungkinan butuh 320.000 ton baja. KHI Pipe memprediksi, tender proyek itu baru akan tiga sampai lima tahun lagi.

This year, KHI Pipe serves the sale of 131,000 tons of pipes. The target separates more than the factory’s production capacity of 250,000 tons per year.

KHI Pipe claims to have met 60% of the sales target. “The condition of the oil price has made Chevron company Total stop investing so that it has an impact on sales of oil and gas pipes,” Purwono explained.

Source: Kontan

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