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.