JNOC, Pertamina to study GTL projects

JNOC, Pertamina to study GTL projects

Dow Jones, Tokyo

State-run Japan National Oil Corp., or JNOC, said Thursday it
will conduct a joint feasibility study with Indonesia's state-
owned Pertamina on the viability of JNOC's gas-to-liquids
technology for gas fields in Indonesia.

GTL, the technology for converting natural gas to middle
distillate liquids, has received attention in recent years as the
technology is able to produce near-zero sulfur, or extremely
environmentally friendly, fuels.

During the next 15 months through March 2003, JNOC and
Pertamina will conduct studies that include screening gas fields,
preparing a development plan, designing and evaluating a GTL
plant, marketing GTL products and economic evaluation of the
proposed project.

JNOC is expected to spend about 100 million yen on the study,
a JNOC official said. Pertamina will also pay for its part, but
an estimated amount isn't available.

JNOC and five Japanese companies - Japan Petroleum Exploration
Co., Chiyoda Corp., Cosmo Oil Co., Nippon Steel Corp. or and
INPEX Corp. - are currently testing their GTL technology at a
pilot plant.

According to JNOC, a lot of small- and medium-sized gas fields
in Indonesia are untapped because of economic and technical
difficulties.

Development of such gas fields would contribute to stable
energy supply and environmental protection in the Southeast Asia
region including Indonesia, JNOC said in a statement.