PGN likely to pick Petronas-led consortium to become strategic partner

State gas distribution company PGN said on Wednesday it would likely pick a consortium led by Malaysia?s national energy company Petronas to become its strategic partner for 40 percent stake in PGN?s subsidiary PT. Transgasindo to run gas pipeline from South Sumatra to Duri in Riau and from South Sumatra to Singapore.

PGN president director WMP Simandjuntak told Petromindo.com his company was awaiting confirmation from the government on whether it could approve its deal with the consortium.

Simandjuntak declined to mention the amount offered by the consortium for 40-percent stake in Transgasindo. He only said the consortium had offered good price.

The pipeline project, valued at US$477 million, is slated for completion in August 2003.

Reports said the consortium had submitted in April its bid for 40 percent of Transgasindo. PGN had earlier offered 25-40 percent participation.

Consortium members are Gulf Indonesia Resources Ltd, Talisman Energy Inc and Singapore Petroleum Corp.

Another consortium led by Korea Gas Corp. (Kogas) had also submitted its bid for Transgasindo stake. Consortium members are Unocal Corp, El Paso Corp and AIDEC Management Co (AIMAC). (alex)