Petronas plans to buy natural gas from South Sumatra
Saturday, September 28 2002 - 03:15 AM WIB
"We are still negotiating the planned sales of the natural gas to Malaysia with Petronas (Malaysian state owned oil and gas company)," Pertamina?s director for upstream operation Iin Takhyan said. According to him, the value of the gas sales to Malaysia would be equal the contract signed by Singapore last year.
Singapore signed an agreement to buy natural gas from West Natuna under a 20-year contract which is worth about US$3.3 billion. The gas from Conoco?s offshore oil field in West Natuna is transmitted through an under sea pipeline with a capacity of 300 million cubic meter per day. In addition, Singapore has also signed a contract to buy natural gas from South Sumatra.
Malaysia, through Petronas, also signed in August this year a 20-year contract to buy natural gas from Natuna?s Block B oil field. The sales value is worth about US$2.9 billion.
Takhyan said that Petronas had demanded to own part of the Corridor gas field?s stake as part of the deal. "At present Petronas is still negotiating the deal with Gulf Indonesia as the majority owner of the gas field," he said.
Early this week, Indonesia signed a 25-year contract to sell liquefied natural gas (LNG) to Chinese province of Fujian. Under the contract which is worth about US$8.5 billion, Indonesia will ship 2.6 tons of LNG a year to the Chinese province. The gas will be shipped from the massive Tangguh field in Papua which is now under development. As part of the deal, China will have 12.5 percent interest in the gas field, which is operated by BP Indonesia. BP is still preparing the gas liquefaction plant to process the natural gas into LNG.
State owned gas distribution company PT PGN is now constructing a massive gas pipeline network which will link South Sumatra?s Corridor gas field with Batam, Singapore and Malaysia. The construction of the pipeline will cost about US$477 million. (*)