Natuna plan must run as scheduled<\/p>\n
JAKARTA (JP): President Soeharto said yesterday that the
\nmulti-billion dollar gas liquefaction project in Natuna, Riau,
\nmust proceed according to schedule.<\/p>\n
\"The mandate from President Soeharto is that all related
\nparties, including cabinet ministers and private companies
\ninvolved in the project, should help make it run on time,\" State
\nMinister for Research and Technology B.J. Habibie said after
\nattending the first plenary meeting on the Natuna project at
\nMerdeka Palace yesterday.<\/p>\n
The plenary meeting, presided over by Soeharto, was attended
\nby the Natuna project's advisory team headed by Coordinating
\nMinister for Economy and Finance Saleh Afiff, and its management
\nteam headed by Habibie. The meeting lasted for two-and-a-half
\nhours.<\/p>\n
Habibie revealed that construction is scheduled to commence in
\nearly 1997 and that the engineering and designing of auxiliary
\nfacilities at the Natuna field has started.<\/p>\n
The project, which will need a total investment of between
\nUS$38.8 billion and $41.8 billion, will include 18 offshore
\nplatforms and six gas liquefaction trains on Natuna island.<\/p>\n
\"Last month, I instructed the Agency for Technology Assessment
\nand Application to start mapping Natuna's sea beds,\" Habibie
\nsaid. The agency has also started mapping Natuna island.<\/p>\n
At the meeting, Habibie was accompanied by Rear Admiral R.
\nMaryono, chief of the Natuna project's executive board, G.A.S.
\nNayoan, coordinator of the gas field development, and Suleman
\nWiradidjaja, coordinator of the supporting facilities.<\/p>\n
Local firms<\/p>\n
Habibie assured that the government was counting on the
\nparticipation of local private companies in developing the gas
\nextraction project.<\/p>\n
\"I don't care who owns the companies, as long as they are
\nincorporated in Indonesia, have experience and technology in the
\ngas field so that they can meet international quality standards,
\noffer competitive prices and accomplish jobs on time,\" Habibie
\nasserted.<\/p>\n
Habibie explained that his party was still negotiating with
\nJapanese companies on the sales of liquefied natural gas (LNG)
\nfrom Natuna's first two production trains.<\/p>\n
The first two trains, which will have a combined capacity of
\nfive million tons of LNG per annum, are scheduled to start
\ncommercial production by the year 2005.<\/p>\n
Habibie added that his party was also seeking marketing
\npossibilities in South Korea and Taiwan for LNG from Natuna's
\nnext trains. He added that by then Indonesia would face strong
\ncompetition from other countries, especially Middle Eastern
\ncountries, Southeast Asian nations, the United States, Australia
\nand Russia.<\/p>\n
\"Therefore, it is important to accomplish this project on
\nschedule so that when the world market is flooded by LNG from
\nother gas fields, we have already secured our market with long-
\nterm contracts with our traditional partners,\" Habibie said.<\/p>\n
Indonesia is currently the largest producer of LNG in the
\nworld, with a total production capacity of 22.2 million tons per
\nannum or 30.2 percent of the total capacity of the existing
\nliquefaction plants in the world. Indonesia's LNG comes mainly
\nfrom two gas fields, one in Aceh and the other in East
\nKalimantan. Indonesia exports all of its LNG output to Japan,
\nSouth Korea and Taiwan.<\/p>\n
The Natuna gas field, located 225 kilometers northeast of
\nNatuna island, is estimated to contain 222 trillion cubic feet of
\nnatural gas. Only 75 percent of the gas is recoverable because of
\nthe high content of carbon dioxide. The field could yield up to
\n15 million tons of LNG per year for 30 years.<\/p>\n
Also on hand at yesterday's plenary meeting were Coordinating
\nMinister for Industry and Trade Hartarto, Coordinating Minister
\nfor Political Affairs and Security Soesilo Soedarman, Minister of
\nNational Development Planning Ginandjar Kartasasmita, Minister of
\nHome Affairs Yogie S. Memet, Minister of Finance Mar'ie Muhammad,
\nMinister of Mines and Energy I.B. Sudjana, Minister of Tourism,
\nPost and Telecommunication Joop Ave, Minister of Agriculture
\nSjarifudin Baharsjah, Minister of Transmigration Siswono
\nYudohusodo, Minister of Public Works Radinal Moochtar and
\nCommander of the Armed Forces Feisal Tanjung. (rid)<\/p>",
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