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.