[Kabar-indonesia] RI to announce winner of Java-Kalimantan pipeline tender July 17 [+PGN Pipeline]

[Joyo at aol.com]

also: Indonesia Press: PGN To Build $1.2B Gas Pipeline
Proj

Indonesia to announce winner of Java-Kalimantan
pipeline tender July 17

JAKARTA, July 3 (XFN-ASIA) - The oil and gas
downstream regulatory body (BPH Migas) said it will
announce the outcome of the tender to build a 1,219-km
gas transmission pipeline from Central Java to East
Kalimantan on July 17.

BPH Migas chairman Tubagus Haryono however declined to
comment on a Bisnis Indonesia report that the agency
has named PT Perusahaan Gas Negara (PGN) as the
winner.

Earlier, Bisnis cited an unnamed source as saying that
the PGN consortium won over two other bidders -- PT
Bakrie Brothers and PT Barata Indonesia -- because it
was viewed as having more operational experience than
the others, and that the financing and technical
aspects of its bid were superior.

PGN is teaming up with the World Bank, the Asian
Development Bank (ADB) and China's CNOOC for the
project.

The gas pipeline, which is estimated to cost around
1.2 bln usd to build, is expected to carry 1.0 bln
cubic feet of natural gas per day from fields in East
Kalimantan to users in Central Java by 2009.

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Indonesia Press: PGN To Build $1.2B Gas Pipeline Proj

JAKARTA, July 2 (Dow Jones)--The Indonesian downstream
oil and gas regulating body BPH Migas has granted
state-owned PT Perusahaan Gas Negara (PGAS.JK)
exclusive rights to build a $1.2 billion natural gas
pipeline from East Kalimantan to Central Java, Bisnis
Indonesia reported Monday.

The report quoted an unnamed source as saying that the
BPH Migas selected the state-owned company over two
other competitors namely PT Bakrie and Brothers
(BNBR.JK) and PT Barata Indonesia.

The 1,219-kilometer natural gas pipeline project is
expected to channel between 700 million-1 billion
standard cubic feet of natural gas a day.

BPH Migas is expected to officially announce its
decision some time this week, the newspaper reported.

The government is pushing the project ahead despite
the fact that gas producers have said that they might
not be able to supply gas for it.

The report didn't mention how the government will
resolve the supply problem.

Indonesia is the world's sixth-largest natural gas
producer, and the world's largest natural gas
exporter.

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Joyo Indonesia News Service
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