Pertamina to supply 350m cubic feet of gas per day to Singapore

State oil and gas firm Pertamina will sign a contract with Gas Supply Private Ltd. of Singapore in January, 2001, that would require the former to supply the latter with natural gas for 20 years starting 2003.

Pertamina's director for natural gas production and distribution Sofian Farhan said Pertamina would initially supply Gas Supply Private Ltd. with 100 to 150 million cubic feet of natural gas per day, and the volume would continuously be increased until 350 million cubic feet per day.

"The contract will be signed in January, and the piping must be ready two years later," Sofian said.

The gas piping, spanning for 320 kilometers, would connect Sekemang in South Sumatra with Singapore through Batam island. The piping would transport gas produced by Gulf Indonesia Resources and Santa Fe (Snyder) on Sumatra Island to Singapore.

Pertamina projected that total investment for the project would reach US$1 billion, of which $700 million to build gas refinery plant, and the remaining $300 million to build the piping line.

This will be the second gas supply contract to be signed by Pertamina with its Singapore partners. The first contract signed by Pertamina was the one to supply Singapore with 325 million cubic feet of gas per day from Natuna gas field in Riau. The gas will be transported through 640-kilometer under-water piping. (*)