Exspan, Marathon to sign LNG market agreement in January 2003

Publicly listed oil producer PT Medco Energi International Tbk said on Wednesday its subsidiary PT Exspan Nusantara would likely sign in January 2003 a Head Agreement with U.S.-based trading company Marathon Oil Corp to market liquefied natural gas (LNG) from Central Sulawesi to the United States? West Coast.

Medco?s director and chief operating officer Rashid I. Mangunkusumo said the two parties should conclude negotiations soon unless Marathon would decide to turn to other gas producers either from Indonesia or from other countries.

?Marathon has set deadline to build a LNG receiving terminal in West Coast,? Rashid told Petromindo.Com.

In partnership with Pertamina, Golar LNG Limited, and Gropo GGS, S.A. de C.V., Marathon plans to develop a major LNG re-gasification and power generation complex near Tijuana in the Mexican State of Baja California.

The complex will become operational in 2005 and provide an estimated supply of 750 million cubic feet of natural gas per day.

Meanwhile, Exspan and state oil and gas firm Pertamina had formed a joint venture to build and operate an LNG plant in Matindok in Central Sulawesi, which is located near Senoro-Toili Block where the joint venture will also operate oil fields.

Earlier reports said proven and possible gas reserve in the Senoro-Toili block could reach more than 9 trillion cubic feet (TCF). (godang)