Three consortiums interested in PGN?s pipeline stake

State gas firm PGN said on Thursday that three international consortiums had submit indicative bids to acquire between 25 percent to 40 percent of stake in PGN?s new transmission subsidiary.

PGN had earlier invited 15 local and international firms to submit their bids.

PGN?s president WMP Simandjuntak told reporters that the transmission subsidiary Transco 1 will own and ultimately operate pipelines linking gas fields in South Sumatra to Singapore, via Batam, and to crude oil fields operated by PT Caltex Pacific Indonesia, a joint venture between Texaco Inc and Chevron Corp.

Simandjutak said that the money raised would be used to partly finance the South Sumatra-Singapore pipeline, which is estimated to cost PGN US$ 470 million to construct. PGN is required to complete the pipeline by August 2003, when the first delivery of the 350 MMCFD of gas to Singapore Power would commence.

He added that the consortiums would be scheduled to conduct due diligence between December 2001 and January 2002 before submitting final bids in mid-February.

Final selection of the strategic partner would be announced end of February 2002.

Simandjuntak did not reveal the members of the consortiums for confidentiality reason.(alex/godang)