PGN To Spend Rp 1 Trillion For Gas Pipe Project In Riau

Pekanbaru, Riau, July 25 (Antara) - State-owned gas company PT Perusahaan Gas Negara (Persero) said it has set aside Rp1 trillion for gas pipe project in Riau. The gas pipe will be built between the city of Duri, in the district of Bengkalis and the city of Dumai to be operational in 2016. "We will make available Rp1 trillion to channel gas from Duri to Dumai with pipe spanning the 100 kilometer distance," General Manager of PGN Strategic Business Unit (SBU) III for northern Sumatra Yosviandry said here on Friday. The gas would be supplied to industries, hotels, restaurants and households in port city of Dumai, Yosviandry said. The project does not need land clearing as the pipe would be installed along the road side between Duri and Dumai, he said. He said tender would be held this year for the procurement of pipes and the winner of the tender would awarded the contract to carry out the project. "In early 2016, we should be able to channel gas from South Sumatra to feed consumers including industries and households in Dumai," he said. The plan is the project would be expanded in the following phase to channel gas to North Sumatra to cope with energy crisis in the province, he said. Head of PGN for Pekanbaru area Wendi Purwanto said currently PGN`s customers in Riau are only industrial companies such as PT Indah Kiat Pulp and Paper (IKPP) in Perawang, that needs around 17 standard metric cubic feet of gas per day (mmscfd), and two oil and gas companies -- Pertamina Lirik in the district of Indragiri Hulu and Pertamina Ukui in the district of Pelalawan. "We could not yet supply gas for hotels, restaurants and households because of limited supply," he said.