South Sumatra - West Java Gas Pipeline Project

Period (Date of Loan Agreement):
    March 27, 2003

    South Sumatra, West Java

Amount Provided:
    49,088 million Yen

Executing Agency:
    State Gas Company (PT PGN)

Key Points:
    Transporting gas produced in South Sumatra to West Java through a gas pipeline

The objective of the project is to make efficient use of resources through switching energy sources from oil to natural gas and respond to inadequate gas supply in West Java, the country's socioeconomic center and the largest market of gas consumption. The project consists of constructing a gas pipeline connecting South Sumatra with West Java where a decline in oil production is foreseen in its offshore oil fields. The construction of the main gas pipeline will create an environment that will facilitate energy operators to enter the gas market, which will promote the development of unexploited gas fields and increase new entries in gas transport and distribution business. Thus, as a secondary impact, the project is expected to help develop a competitive gas sector. The project is due to be completed in November 2008.