Thailand interested in Natuna's natural gas
Thailand interested in Natuna's natural gas
JAKARTA (JP): The state-owned Petroleum Authority of Thailand (PAT) has expressed an interest in buying natural gas from the Natuna gas field in Riau, the president of state-owned oil firm Pertamina, Faisal Abda'oe, said here yesterday.
Speaking at a hearing of the House of Representatives' manufacturing, mining and energy commission, Abda'oe said his company and PAT have conducted a series of talks and correspondence on the matter. The next meeting will be held in Bali early next month.
"I'm confident that the next meeting will give a more positive result," Abda'oe told the commission.
Unlike other buyers, who buy Indonesian gas in the form of liquefied natural gas (LNG), PAT wants the natural gas pipelined directly from Natuna, Abda'oe said.
He noted that gas sales through pipelines will be more competitive than those through the liquefaction method.
"Besides, the planned Natuna-Thailand pipelines can pass the Arun gas liquefaction trains in Aceh, so that some of the Natuna gas can be transported to Arun for liquefaction," Abda'oe said.
Indonesia is currently the largest producer of LNG in the world, with a total production capacity of 22.2 million tons per annum or some 30 percent of the total capacity of the existing liquefaction plants in the world.
Indonesia's LNG comes from two plants, one in Arun and the other in East Kalimantan. Indonesia exports all of its LNG output to Japan, South Korea and Taiwan.
Pertamina has been targeting the three countries to become the buyers of the Natuna gas. However, so far no commitments have been made from gas customers in the three countries to buy Natuna gas.
"For the sake of the Natuna project, we must get positive gestures from prospective customers by the end of next year because by then, other countries, especially Qatar, Yemen and Oman, will be ready to market their LNG," Abda'oe said.
When asked if the Natuna project will be halted if there are not enough costumers by the end of 1997, Abda'oe declined to comment, saying: "Don't be so pessimistic. We have to be optimistic about this."
State Minister of Research and Technology B.J. Habibie revealed last year that the construction of an LNG plant in Natuna was scheduled to commence early next year and that the engineering and designing of auxiliary facilities at the Natuna field had started.
The project, which will need a total investment of between US$38.8 billion and $41.8 billion, will include 18 offshore platforms and six gas liquefaction trains on Natuna island.
The Natuna gas field, located 225 kilometers northeast of Natuna island, is estimated to contain 222 trillion cubic feet of natural gas. Only 75 percent of the gas is recoverable because of the high content of carbon dioxide. The field could yield up to 15 million tons of LNG per year for 30 years. (rid)