Singapore may import gas from Indonesia

Singapore may import gas from Indonesia

SINGAPORE (Reuter): Singapore may buy natural gas from Indonesia to meet its fuel needs for power stations which will more than double by 2004, a minister said on Saturday.

"When the (Indonesian) Natunas (gasfield) is in operation, we would be interested in discussing to supply gas ...we would be happy to offtake some of its production," said Yeo Cheow Tong, Minister for Trade and Industry.

"But the first thing is to see if the Indonesians are prepared to supply gas to Singapore."

Yeo was speaking to reporters at a ground-breaking ceremony for the Tuas power station.

Electricity demand is expected to double by 2004. Singapore already buys up to 150 million cubic feet (4.2 million cubic metres) per day of natural gas from Malaysia.

Indonesia has been negotiating with oil giant Exxon for years on how to exploit the Natunas gasfield in the South China Sea, which is estimated to have 150 trillion cubic feet (4.2 trillion cubic metres) of reserves.

Officials of the Indonesian state oil firm Pertamina were quoted as saying in early September that they hoped to complete negotiations by November.

Yeo said the S$1.7 billion (US$1.2 billion) 4800 MW Tuas power station will be developed in four stages, with the first two 600 MW units expected to be onstream in March 1999.

While it would initially use oil, it can be converted to burn gas.