PGN seeks investors for Sumatra project

PGN seeks investors for Sumatra project

JAKARTA: PT Perusahaan Gas Negara, Indonesia's state-owned gas
distributor, is seeking overseas investors to help build a US$300
million pipeline linking gas fields in southern Sumatra to North
Sumatra province.

The Jakarta-based company plans to invite bids for prospective
partners in the first half of this year, Chief Financial Officer
Joko Pramono said. The 493-kilometer pipeline will link Duri gas
fields, operated by a unit of ChevronTexaco Corp., in Riau
province, to the city of Medan and other cities in North Sumatra,
he said.

"We're seeking investors for a built-on-transfer scheme or a
joint venture," Pramono told reporters in Jakarta on Wednesday.
"We aren't planning to sell bonds for this one."

Perusahaan Gas expects to complete construction in July 2007,
sooner than its initial target of December 2007, he said. --
Bloomberg