PGN to win E. Kalimantan-Java pipeline development right

State gas distribution firm PGN tipped to have been placed on the highest list as winner of right to develop East Kalimantan to Java pipeline, Bisnis Indonesia reported Monday quoting a source.

A source told the daily that PGN received the highest scores in the tender valuation conducted by oil and gas downstream industry regulatory agency BPH Migas thanks to its more attractive financing scheme and its proven record in the construction of a gas pipeline.

The newspaper said that the decision to name PGN as the winner of the US$1.2 billion project was made during a committee meeting held by BPH Migas last week. PGN outbids two other bidders PT Bakrie and Brothers, and PT Barata Indonesia.

Meanwhile, an official at BPH Migas told Petromindo.Com that the agency had not yet named the winner for the tender. "We are currently evaluating the bidding proposals. The winner is scheduled to be announced on July 27," director for natural gas at the agency, Saryono, said.(*)