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KOGAS and PDPDE sign MoU for two gas pipelines

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World Pipelines,

State-owned Korea Gas Corporation (KOGAS), an importer of liquefied natural gas (LNG), has signed a memorandum of understanding (MoU) with Indonesia’s Perusahaan Daerah Pertambangan dan Energi (PDPDE). The MoU will see the construction of two gas pipelines for US$600 million in southeast Asia.

KOGAS will construct the first 152 mile (284 km) natural gas pipeline in South Sumatra. After, the company will then construct another line in Bali, measuring 73 miles (118 km).

In addition to construction, KOGAS will operate, maintain and own the natural gas pipelines for 30 years.

Additionally, KOGAS will carry out a feasibility study that will be evaluated before deciding to proceed with the pipeline or not.

The company also believes the pipeline projects will boost co-operation between South Korean companies and Indonesia in potential future gas or LNG infrastructure businesses amid the current market slump.

Edited from various sources by Stephanie Roker

Sources: Rigzone, World Construction Network, Hydrocarbons-Technology

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