PGN to issue bonds worth US$500 million to finance pipeline project
Monday, November 4 2002 - 02:28 AM WIB
PGN?s president WMP Simanjuntak said in Jakarta over the weekend that the bonds would be offered to local and international investors during the first quarter of next year. In addition to the bond, the company would also launch its initial public offering (IPO) next year to support the massive pipeline project.
Simanjuntak said that PGN would sell between 25 percent and 30 percent of its shares during the IPO.
PGN plans to build 1,100?kilometer gas pipeline project linking Kalimantan and Java. The project which will transmit natural gas from major producers in Kalimantan to industrial users in Java will cost about US$1.7 billion. The project will be divided into two sections: Kalimantan and East Java, and East Java and West Java.
The Kalimantan-East Java segment of the pipeline project will cost about US$1.1 billion, while the East Java and West Java section would cost about US$600 million. The construction of the massive gas pipeline project which will have the capacity to transmit gas of 1,000 MMCFD per day.
Simanjuntak said that the construction of the pipeline project, which would be commenced in 2005, is scheduled for completion in 2008.
He said that PGN has received grant of about US$650,000 from USAID to carry out feasibility study of the project. (*)