Pertamina eyes Malaysia gas market

State oil and gas company Pertamina planned to supply natural gas from west of the Natuna islands in Southeast China Sea to Malaysia, a senior official of the Ministry of Mines and Energy said.

Exploration and production director Kardaya said Pertamina had revealed the plan to the ministry but he said thus far no negotiations had been held between Pertamina and Malaysia's state oil and gas company Petronas.

He said Petronas had been operating gas fields around 50 kilometers northwest of the West Natuna gas fields, which are being developed by Pertamina's production sharing contractors Conoco Inc. of United States, Gulf Resources of Canada and Premier Oil of Britain. Petronas transmits the gas to Malaysia's mainland for power generation.

But, Kardaya said, gas reserves at Petronas' fields have been much depleted that it had to find new sources of gas supplies.

"Thus, Pertamina has an idea of building a pipeline that will be connected with Petronas' gas pipeline through which gas from West Natuna will be transmitted to Malaysia, " Kardaya told Petromindo.Com recently.

Pertamina and its West Natuna Consortium Group, comprising Conoco, Gulf and Premier, have been constructing an around 550-kilometer-long pipeline to transmit gas from West Natuna to Singapore. Pertamina and the contractors have signed a contract to supply Singapore's Sembawang Corporation with natural gas starting 2001.

A Pertamina official told Petromindo.Com Pertamina had talks with Petronas on the planned gas supply but he refused to reveal the results of the talks.

Kardaya also said Pertamina had an idea of building a pipeline to supply natural gas from Central and South Sumatra to the Arun liquefied natural gas (LNG) plant in Aceh following the shrinkage in gas reserves in the province.

"But, it is only a far-away idea as no big gas reserves have been found in the Central and South Sumatra, which are enough for LNG operations," Kardaya said. (*)