Thailand interested in importing RI gas

Leony Aurora, The Jakarta Post, Jakarta

Thailand's state oil and gas company PTT PCL may bid for oil and gas blocks in Indonesia and also purchase natural gas amid soaring global oil prices.

PTT was in negotiation with other companies to form a joint venture to develop some oil and gas areas here, said executive vice president Tevin Vongvanich on Wednesday after a meeting with Minister of Energy and Mineral Resources Purnomo Yusgiantoro.

He declined to name the specific blocks that the company is interested in.

Purnomo said that the meeting also discussed the possibility of Thailand purchasing natural gas from the East Natuna D-Alpha block in Natuna Sea, which would include building a pipeline between the two countries.

"They also want to buy LNG (liquefied natural gas) as they are building an LNG terminal," said Purnomo.

The receiving terminal is set to process its first delivery by the end of 2010. In the first phases the terminal will have a capacity of 5 million tons a year, which will double within three years of operation.

Vongvanich said that LNG would support energy demand in the country before natural gas, delivered through the planned pipelines, reached Thailand in 2015.

"The gas will supply mostly power plants and industries," he added.

With global oil prices coming closer to US$60 per barrel, Thailand, which imports 600,000 barrels of crude oil per day to fulfill domestic demand, is looking to diversify its energy sector.

Indonesia may have an excess of LNG production within five years as contracts amounting to 12 million tons a year with Japan are set to expire in 2010.

So far, Japan has only agreed to extend half of the contracted amount and is requiring lower prices for the other 6 million tons.

Purnomo said that several undeveloped gas fields in East Kalimantan could be exploited to provide supplies to Thailand.

The two countries are still in negotiation on the volume and price for the gas.