Thailand interested in importing RI gas

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.