Nippon Steel wins Indonesian gas pipeline order
Nippon Steel said it has signed a Y 17-bn contract to build a part of Indonesia's planned natural gas pipeline
connecting the two main islands of Sumatra and Java.
Japan's largest steel maker by output said it signed the contract with Indonesia's state-owned natural gas monopoly
Perusahaan Gas Negara, or PGN.
Nippon Steel said it will build a 105-km undersea section of the 500-km pipeline, which will carry natural gas from
the onshore Pagardewa gas field in southern Sumatra to western Java.
Construction of the undersea pipeline will be completed in the spring of 2007, the company said.
The pipeline to be built by Nippon Steel is part of a project financed by a loan from Japan's state-run bank. In 2003
the Japan Bank for International Cooperation, or JBIC, signed a 40-year loan of Y 49.09 bn with PGN for the pipeline
project.
Japan's JFE Holdings is also taking part in the project and signed an Y 18-bn contract. JFE will build a 270-km
section running from the gas field to the south-eastern shore of Sumatra.
