PGN, Transasia Pipeline sign $187.6 million sale agreement

State gas distribution and transmission company PGN on Thursday signed an agreement with Transasia Pipeline Company Pvt. Ltd (Transasia) to sell to the latter 40-percent stake in its subsidiary PT. Transgasindo at US$187.6 million.

Transasia is the joint venture of Malaysia?s national energy company Petronas (35 percent), ConocoPhillips (35 percent), Singapore Petroleum Corporation (15 percent), and Talisman Energy Inc (15 percent).

PGN will use the $187.6 million to construct gas pipelines from Grissik (South Sumatra) to Singapore via Sakernan (Jambi) and Batam.

Earlier report said the pipeline project requires a total of $450 million. The remaining fund needed for the project will partially come from the Asian Development Bank, European Bank, and PGN?s equities.

PGN president director WMP Simandjuntak said earlier the South Sumatra-Singapore pipeline had been planned to start operating in the third quarter of 2003. (godang)