JAKARTA, 22 November 2006 - State gas distributor PT Perusahaan Gas Negara (PGN) has announced a plan to invest around US$400 million in the construction of a new compressed natural gas (CNG) plant.

The project, which will supply gas from Kalimantan to Sulawesi, will be built in cooperation with Enersea from the United States, PGN president W.M.P. Simanjuntak told the newspaper Investor Daily.

Simanjuntak said the US company will provide the necessary technology and will be the operator of the project.

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