Singapore, Indonesia leaders launch joint energy project
Monday, January 15 2001 - 02:00 PM WIB
Indonesian President Abdurrahman Wahid and Singaporean Prime Minister Goh Chok Tong Monday launched a multi-billion-dollar gas project which is seen as a boost to often prickly bilateral ties.
Abdurrahman arrived for a one-day visit to inaugurate the 656-kilometer (406-mile) undersea gas pipeline to Singapore's Jurong Island petrochemical complex from Indonesia's Natuna gas field in the South China Sea. Gas started flowing through the pipeline at the beginning of this month.
"We have achieved something we can be proud of," Abdurrahman told senior officials, business executives and reporters at Singapore's Jurong Island.
The pipeline is the result of a deal between Indonesian state oil and gas company PT Pertamina and Singapore's SembCorp Gas.
Despite recently strained ties with Indonesia, Singapore Prime Minister Goh Chok Tong said the new US$1.5 billion pipeline was a symbol of strong bilateral ties between the two nations.
He added that the two countries are "in an advanced stage of discussion for a second gas project" to bring natural gas from Indonesia's Sumatra to Singapore. He said that deal would be between Singapore Power and Pertamina and would generate US$7 billion in revenue over 20 years.
Natural gas is the latest commodity wealthy Singapore is importing from Indonesia, its resource-rich yet poor neighbor.
"The entire gas project is expected to generate some US$8 billion in revenue for Indonesia over 22 years," Goh said.
Goh welcomed Abdurrahman, who was accompanied by Foreign Minister Alwi Shihab and other senior ministers, as he arrived for the ceremonies held in a huge white tent under driving rain.
Later the two leaders and their aides retreated to an adjacent tent for a brief meeting described by one Singapore official as a "social gathering" before Abdurrahman and his party left for home. (*)