ExxonMobil sees market for E. Natuna gas in 10 years

The abundant natural gas reserves in East Natuna would not reach the market in 10 years due to

to expensive costs and the lack of sizeable market, according to an executive from US oil, gas giant ExxonMobil Inc.

?We?re ready when the market is ready, but the market is at least 10 years away,? Alan Routh, ExxonMobil Oil Indonesia?s gas marketing senior vice president said in a seminar Thursday.

Routh, however, said despite the lack of market, ExxonMobil is confident about the project?s future due to the strategic location and huge gas reserves. Moreover, it had already established detailed plans to develop the gas field, he added.

Routh said their marketing plans included long-term plans of building gas pipelines to China, Taiwan, Thailand, Malaysia, Singapore and Java.

?We may not be able to do that now because no market would absorb the volume of at least 1 billion cubic feet per day. However, that kind of situation would change in the next 10 to 15 years.

?We see the long term demand in China to grow significantly in the future and the demand in Thailand for the next 10 year would far outstrip supply. The same things will also true to peninsular Malaysia and Java, ? Routh said.

D-Alpha gas field in East Natuna is one of the world?s biggest field with the reserves of 222 TCF, but only 46 percent of these reserves are recoverable due to almost 80 percent of carbon dioxide level.

Routh explained it would take several billion US dollars to develop the field with CO2 separator and re-injection facilities, which makes the development project economic only at the minimum rate of 1 BCF per day.

ExxonMobil Corp. holds 76 percent working interest in D-Alpha East Natuna while state oil and gas firm Pertamina holds the remaining balance. (alex)