Nova Corp eyes Sumatra natural gas pipeline
Nova Corp eyes Sumatra natural gas pipeline
JAKARTA (JP): Nova Corporation of Canada, whose activities
include the provision of natural gas and petrochemicals services,
will bid for a contract to construct a 540-kilometer natural gas
transmission pipeline in Sumatra, the company's chief executive
officer said yesterday.
J.E. Newall said the project consists of the construction of a
pipeline connecting Asamera, Duri and Batam in central and
southern Sumatra and Riau.
The project involves US$600 million in investments, of which
75 percent will come from the Asian Development Bank, the
European Investment Bank and state-owned PT Gas Negara, while the
remaining 25 percent will come from the winner of the bid, he
said.
Newall was accompanied yesterday by Harry Van Zeist, Nova Gas
International's (NGI's) regional director for the Asia-Pacific, and
John F. Sharp, NGI's business development manager for Indonesia.
Gas Negara announced in August that it plans to construct a
$1.1 billion gas pipeline system, totaling 1,040 km in length,
from Sumatra to West Java.
The pipelines will consist of a 540-km line between southern
and central Sumatra and another 500-km line from southern Sumatra
to West Java.
The pipelines will be part of the country's integrated
pipeline system, planned to cover 2,195 km from Riau province to
Porong in East Java. Construction is scheduled to be completed by
2006.
The construction of the Asamera-Duri-Batam pipeline is
expected to be completed in October 1997, while the Sumatra-West
Java line is scheduled for completion in 2000.
Newall said that if Nova wins the project, the company will
provide technology-transfer, training and guidelines for project
execution, operations and maintenance in the natural gas sector,
as well as constructing the pipelines.
He said the winner of the bid, which will later join hands
with Gas Negara in the construction of the pipelines, will be
announced next July.
Gas Negara president Qoyum Tjandranegara said in August that
other companies intending to bid for the project included British
Gas, Gas du France and Technicorp of the United States.
Newall said Nova was also eying possible investments in
Indonesia's petrochemical industry. (pwn)