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)