Petronas, Pertamina gas deal seen by April<\/p>\n
KUALA LUMPUR (Reuters): Malaysian and Indonesian state-owned
\noil firms are expected to seal negotiations for a 20-year deal
\nfor the supply of gas from Indonesia's West Natuna by April,
\nMalaysian Energy Minister Leo Moggie said on Friday.<\/p>\n
\"Petronas and Pertamina are continuing discussions and have
\ntargeted to complete negotiations in early April,\" Moggie told
\nreporters after a meeting with Indonesian Energy and Mines
\nMinister Purnomo Yusgiantoro in Malaysia's capital.<\/p>\n
Under a pact signed in October, Petronas will buy up to 250
\nmillion standard cubic feet (scf) of natural gas per day from
\nPertamina, with a total volume of 1.5 trillion scf over a 20-year
\nperiod.<\/p>\n
The pact provides for an additional gas purchase of up to one
\ntrillion scf of gas from Pertamina under the same terms and
\nconditions. The gas will be piped to Petronas's Duyong gas field
\nfacilities in Malaysia.<\/p>\n
Moggie said initial gas delivery is planned to start in July
\n2002. He also said Indonesia and Malaysia had agreed to revive a
\ncoal-fired power plant project on Sumatra island that could be
\nused to supply electricity to peninsular Malaysia.<\/p>\n
The project was first announced in 1997 but it was shelved a
\nyear later because of the Asian financial crisis.<\/p>\n
\"A joint steering committee will be set up to look into the
\ndevelopment of the power plant,\" Moggie said.<\/p>\n
Under the 1997 proposal, a consortium was to be set up and led
\nby Malaysia's state-controlled utilities giant Tenaga Nasional
\nBhd and Indonesia's state-owned PT Perusahaan Listrik Negara
\n(PLN).<\/p>\n
Moggie said then that Indonesia had a big coal deposit in
\nCerenti, Central Sumatra, and that a coal-fired power plant,
\npossibly with a capacity of 1,200 megawatts, could be built
\nthere.<\/p>\n
He added that electricity from the plant would be supplied to
\nMalaysia either via an undersea cable or via overhead cables
\nstrung along a bridge that the two countries have proposed to
\nbuild between Sumatra and peninsular Malaysia.<\/p>",
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