S'pore firm seeks to buy Natuna gas<\/p>\n
JAKARTA (JP): A Singapore consortium led by Sembawang Corp.
\nwill continue its quest to buy natural gas from the Natuna
\nisland, despite the Indonesian government's cutbacks on big
\ninfrastructure and development projects.<\/p>\n
Sembawang's chairman Philip Yeo was quoted by Singapore daily
\nThe Business Times yesterday as saying that the project was \"on
\ntrack\" to reaching a final deal and would not be derailed by the
\nrecent measures.<\/p>\n
\"Singapore is the first serious customer for gas from the area
\nand the project will generate revenue for Indonesia,\" Yeo told
\nthe daily Wednesday.<\/p>\n
The government announced earlier this week the postponement or
\nreview of Rp 105 trillion (US$35.35 billion) worth of government
\nand state-related projects to cope with the currency crises.<\/p>\n
Mining and energy sectors are among those hardest hit by the
\ndrastic measure, with the postponement of 14 power generation
\nprojects and two oil refineries.<\/p>\n
The consortium, comprising Sembawang, Tuas Power and EDB
\nInternational, proposed earlier to buy $300 million of natural
\ngas a year from West Natuna, starting from the year 2000, to fuel
\npower stations and petrochemicals in Singapore.<\/p>\n
The preliminary pact was signed in May with Indonesia's state-
\nowned gas and oil company, Pertamina, which agreed to supply
\nnatural gas to Singapore via a 480-kilometer underwater pipeline
\nlinking West Natuna to the island state.<\/p>\n
Singapore agreed to finance one-third of the submarine
\npipeline estimated to cost between US$300 million and US$450
\nmillion.<\/p>\n
Yeo said the gas sales agreement, scheduled for signing before
\nthe year's end, would also prompt the go-ahead for Sembawang
\nEngineering and Construction (Sembec) to build a 700-megawatt
\ncogeneration power plant on Pulau Sakra.<\/p>\n
Pulau Sakra would also benefit from the Indonesian gas supply,
\nhe said.<\/p>\n
The Natuna gas field, one of the world's largest gas fields,
\ncontains 222 trillion cubic feet of natural gas.<\/p>\n
The project is 50 percent owned by United States' Exxon Corp,
\n26 percent by Mobil Corp and 24 percent by Pertamina.<\/p>\n
A Japanese consortium comprising eight trading houses and
\nthree exploration firms is expected to buy up to a 13 percent
\nstake in the project from Pertamina later this year. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/spore-firm-seeks-to-buy-natuna-gas-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}