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)