In early 2012, PT KHI Pipe Industries (KHI) entered into a cooperation contract with PT PGN (Persero) Tbk in terms of procuring 3,659 tons of layered pipelines for the SBU Distribution Region III North Sumatra project. Pipes with API 5 L PSL 2 specifications consisting of spiral and ERW pipes with each size of 406.4 × 12.7 mm of 1.961 tons and 323.85 × 10.31 mm of 1,698 tons. Pipes with a length of 12 m each are planned to use a layer of 3 layers of LPE for external and internal epoxy for internal and will be shipped to Medan in May 2012.