Singapore considers second natural gas import from Indonesia

Singapore confirmed on Tuesday it would study the possibilities of a second project to facilitate natural gas import from Indonesia.

This was suggested following the successful start of a system whereby Indonesia is supplying the city-state with natural gas from West Natuna through a 656 kilometer-long pipeline.

Singapore Prime Minister Goh Chok Tong made the statement at a ceremony marking receipt of the first natural gas deliveries from Indonesia's Natunas at Singapore's Jurong island. Present at the ceremony was also Indonesian President Abdurrahman Wahid.

Goh said negotiations for a second project for gas supply from Sumatra to Singapore would be done by Singapore Power through its subsidiary, GasSuplay, and Indonesia's state-owned oil company Pertamina.

"The second project would enable Indonesia to earn around US$7 billion over a 20-year period," he said.

The West Natuna gas supply project ensured Indonesia of an income of around US$8 billion over a period of 22 years since 2001.

In the first project, a total of 325 million cubic feet of natural gas would pumped from the Natunas to a receiving terminal of Singapore's Sembawang Corp Gas, a subsidiary of Sembawang Corp Industries.

Goh said he believed relations between the two countries would become closer with the presence of the two projects, especially in the field of economic development.

"For us the gas will not only be an additional source of energy for a number of power plants and industries but also for the fuel supply of public transport and other commercial transportation means," he said.

Pertamina has built the undersea pipeline systems to export natural gas from the Natunas in cooperation with three production sharing contractors, namely Conoco Indonesia Incorporation Ltd (43.1 per cent), Gulf Indonesia Resouces Ltd (20 per cent) and Premier Oil Natuna Ltd (36.9 per cent).

Pertamina President Director Baihaki Hakim said the US$1.5 billion project was projected as a means of collecting natural gas from 17 different areas in West Natuna for shipment to Singapore.

The system uses a 14- to 28-inch pipe designed for use for 50 years with a capacity of 700 million cubic feet per day with the possibility of an increase of up to one billion cubic feet per day.

Singapore Minister for Industry and Trade George Yeo and Indonesian Minister of Energy and Mineral Resouces Purnomo Yosgiantoro said they hoped the project would be a mark for the ASEAN gas network plan.

"The Asean gas network will bring additional value for exporting countries, make energy price competitive for consumers and create investment opportunities for local and international companies," he said.

Also present on the occasion were Indonesian Coordinating Minister for Economy Rizal Ramli, Trade and Industry Minister Luhut Panjaitan, Foreign Minister Alwi Shihab and ambassador Johan'S Syahperi.

President Abdurrahman Wahid in his speech hailed the move taken by all parties to materialize economic cooperation through the project.

He hoped more commodities such as crude palm oil could be exported on a large-scale to Singapore. (*)