PGN says strategic partner to be announced within weeks

State gas distribution company PGN said on Friday that it is in the final process in selecting strategic partner for 25 percent to 40 percent stake in PT. Transgasindo, PGN subsidiary which will run gas pipeline from South Sumatra to Duri in Riau and from South Sumatra to Singapore.

?We have completed most of the negotiation and hopefully, we could pick the partner within weeks time. What?s left to be completed are just minor details,? said PGN director Adil Abas on a sideline of a conference in Bali.

Petronas-led consortium which consist of Gulf Indonesia Resources Ltd, Talisman Energy Inc and Singapore Petroleum Corp while Korea?s Kogas-led consortium consist of Unocal Corp together with El Paso Corp and AIDEC Management Co (AIMAC) are the final bidders.

Funds from the stake sale will make up a US$250 million shortfall in financing for the US$477-million pipeline project, slated for completion in August 2003.

Transco I plans to develop the South Sumatra-Singapore gas pipeline, which will deliver about US$9 billion worth of natural gas over 22 years to Singapore starting 2003. (alex)