US$600 Million Deal
Korea Gas Corporation (KOGAS) signed a memorandum of understanding (MOU) with Indonesia’s PDPDE South Sumatra (President Yaniarsa Hasan) for the construction of 363 km-long gas pipelines worth US$600 million (706.5 billion won) at Lotte Hotel in Seoul on May 16, while Indonesian President Joko Widodo is visiting Korea.
Under the agreement, KOGAS will build a 245 km-long gas pipeline in South Sumatra and a 118 km-long gas pipeline in Bali, and operate and provide maintenance services for 30 years.
The company plans to conduct a feasibility study first and decide whether to carry forward the project or not depending on results.
By successfully completing the gas pipeline construction project in Indonesia, KOGAS will establish friendly cooperative relationships with the Indonesian government and local firms, take the advantageous position in the Indonesian gas infrastructure business market in the future, including LNG terminal, liquefied gas plant and DME projects, and help domestic companies enter the Indonesian market.