Unocal, Petronas, Kogas shortlisted for Sumatra-Singapore pipeline : Report

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 a natural gas pipeline connecting Singapore and Indonesia, an official with pipeline developer PT Perusahaan Gas Negara was quoted by Dow Jones as saying Monday.

Indonesian state-owned gas distributor 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.

Qualified second-round bidders were selected in December, and will submit final bids in February, the official said.

Petronas will make its bid together with Singapore Petroleum Co., Talisman Energy Inc., and Gulf Indonesia Resources Ltd, he said.

Gulf, which is majority, held by Conoco Inc., operates blocks that will supply the gas to Singapore.

PowerGas, a unit of Singapore Power Ltd., will bid together with Williams Co. and Indonesian pipeline developer PT Trans Nusantara Multi Construction, or Tranaco.

PowerGas recently transferred its contract to import the southern Sumatra gas to Singapore government investment arm Temasek Holdings. Singapore's ongoing energy industry restructuring limits PowerGas to natural gas transmission, while opening gas imports and retailing to competition.

Singapore will import about US$9 billion worth of gas through the pipeline over 22 years, beginning in 2003. The gas will be used for power plants and industry. (*)