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Reserves could total 50 trillion cubic feet
YUTHANA PRAIWAN
PTT Plc, the majority state-owned energy conglomerate, is seeking to jointly develop the massive Natuna field in the South China Sea with the Indonesian national oil company PT Pertamina (Persero), the new licence holder. According to PTT senior executive vice-president Chitrapongse Kwangsuksathit, the offer was made following the signing of a memorandum of understanding between the Thai and Indonesian governments to collaborate in natural gas projects.
The Jakarta government has been attempting to develop Natuna for years and recently awarded the licence to Pertamina instead of extending the licence of the former operator, US-based ExxonMobil.
PTT also attempted to buy the licence from Exxon 10 years ago but withdrew its offer due to high operating costs.
PTT's proposal to Pertamina is now under consideration by the indonesian company's executives. ''If Pertamina agrees with a deal, the gas output will be ready to come online by 2018,'' Mr Chitrapongse said.
According to Pertamina, the Natuna block contains massive proven reserves of natural gas of up to 50 trillion cubic feet with carbon dioxide content.
The Thai and Indonesian governments have had several discussions over the years about the opportunity to form a joint venture to operate Natuna. However, due to the financial crisis in Asia in 1997, their talks were suspended.
Mr Chitrapongse said that as current investment costs, market conditions and the industry had changed dramatically, the details of deal would also change.
He said Thailand had high potential to win a deal due to the fact that the country would be the major customer for the gas.
A 2,000-kilometre pipeline from Natuna would link with PTT's pipeline grid in the Gulf of Thailand and could cost more than 100 billion baht.
PTT has also made an offer to purchase one million tonnes per year of liquefied natural gas (LNG) from the Tanggu petroleum block in Indonesia operated by British Gas in order to serve the thirsty Thai consumers.
PTT is building terminals to handle LNG at its chemical complex in Mab Ta Phut, Rayong, which would start operating in 2011, with annual capacity of five million tonnes.
However, he said, PTT had only sealed a purchase contract for one million tonnes with Qatar, while another one million tonnes from Iran's Pars field are still under negotiation.
Its subsidiary PTT Exploration and Production Plc also announced a plan to develop LNG production facilities at its overseas petroleum blocks in 14 countries to secure PTT's LNG supply.
In another development, PTT had started full operations of its eighth compressed natural gas main station in Rangsit, which could serve demand in the transport sector of 2,600 tonnes daily, up from 1,300 tonnes early this year, with the figure expected to rise to 3,000 by the end of this year.
The new station aims to supply 30 substations in northern Bangkok.
PTT shares closed yesterday on the Stock Exchange of Thailand at 250 baht, up 14 baht, in trade worth 2.6 billion baht.
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