PGN to complete due diligence on four gas pipeline investors

The state-owned gas distribution company PGN will complete in the middle of February a final due diligence process on four bidders eying for a stake in the company?s gas pipeline project, according to its president WMP Simanjuntak.

?We currently conduction a due diligence process at our office together with the Office of the State Minister of State Enterprises,? Simanjuntak on Friday told Petromindo.com via phone.

Unocal Corp., Korea Gas Corp., and consortia led by Malaysia's Petroliam Nasional Bhd. ( Petronas), and Singapore's PowerGas Ltd. are second-round bidders for a stake in PGN?s natural gas pipeline connecting Singapore and Indonesia.

PGN is offering a 25 percent to 40 percent stake in its unit, Transco 1, which will develop the pipeline. The sale is expected to raise US$250 million for the construction of the pipeline.

The pipeline will link gas fields in southern Sumatra to Singapore, via Batam. Transco will also own a second pipeline, carrying gas from southern Sumatra to crude oil fields operated by PT Caltex Pacific Indonesia, a unit of ChevronTexaco Corp.(Godang)