L&M to join RI gas project

L&M to join RI gas project

SINGAPORE (AFX-ASIA): L&M Group Investments Ltd said unit L&M Petromas Pte Ltd had signed an agreement to acquire a 60 percent stake in PT Petroinsana Mitra Mandiri, a company that has an agreement with Perusahaan Pertambangan Minyak Dan Gas Bumi Negara (Pertamina) and PT Moeladi to develop a 60 kilometer gas pipeline in West Java, Indonesia.

L&M Petromas is settling the US$923,000 consideration for the PT Petroinsana stake through the issuance of new L&M shares.

The West Java pipeline project is part of Pertamina's gas distribution system to distribute gas from West Java to power plants, fertilizer plants, cement factories and steel mills in the area.

The estimated revenue and profit from the project is about $42 million and $9 million over for the next six years, it said.

L&M Group said it also expects to secure an option within seven weeks to acquire a stake in another Indonesian gas pipeline project, which is expected to have revenues of about $203 million over the next 10 years.