Thailand interested in buying Natuna gas

Thailand interested in buying Natuna gas

BANGKOK (Reuter): Thailand will next month discuss possible purchases of natural gas from the mega Natuna project located in Indonesian waters, Industry Minister Korn Dabbaransi said yesterday.

He told reporters after meeting with an executive from Exxon , a major share holder in the project, that the meeting would take place here on May 7 with Indonesia's research and technology minister B.J. Habibie and representatives from Exxon.

The Natuna Field is one of the largest natural gas fields in the world. It contains an estimated 222 trillion cubic feet of gas, of which 46 trillion cubic feet are thought to be commercially recoverable.

The field is located in the Natuna Sea, about 225 km (135 miles) northeast of Natuna Island. Exxon has a 50 percent stake in the project and Mobil Corp 26 percent while Pertamina, Indonesia's national oil and gas company holds the rest.

Korn said the May meeting will discuss prices, the amounts of the possible purchases, and an ASEAN pipeline project which will involve cooperation between Thailand, Malaysia and Indonesia.

"The concessionaires of Natuna assured us that the minimum amount they can provide is 1,180 million cubic feet per day... and that the quality of the gas is similar to that produced in the Gulf of Thailand," he said.

An official at PTT Exploration and Production Plc told Reuters recently that the company was likely to invest in the project if Thailand decided to buy natural gas from Natuna.