Exxon confirms talks on plant using Natuna gas

Exxon confirms talks on plant using Natuna gas

SINGAPORE (AP): Exxon Corp. of the United States confirmed
yesterday it is in talks to build a power plant to be fueled by
natural gas produced by Indonesia's Natuna field.

"Discussions are under way with the government of Indonesia
regarding an inter-related project to construct electric power-
generating facilities fueled by gas from the Natuna field,"
according to a prepared statement from a Jakarta-based Exxon
spokesman.

The spokesman wouldn't comment further.

Indonesian Research and Technology Minister B.J. Habibie told
reporters Tuesday that Exxon and Mobil Corp. are expected to sign
a joint venture contract with Indonesian interests to build a
power plant fueled by Natuna gas.

Habibie said the proposed plant in West Java would be linked
to the Natuna field by a 1,000-kilometer (621-mile) pipeline. The
plant is expected to begin operations in 2004 with an initial
generating capacity of 4,000 megawatts, building to 8,000
megawatts by 2006, he said.

Exxon is project leader and holds a 50 percent stake in
development of the US$40 billion Natuna field, located in the
South China Sea. Mobil holds 26 percent stake, and Indonesia's
state gas and oil company Pertamina holds the remainder.

The field contains an estimated 46 trillion cubic feet of
recoverable natural gas. No supply contracts for Natuna gas have
been signed, but Pertamina is holding talks with potential buyers
from Thailand and Japan, among others.