15-01-01 Singapore and Indonesia will sign a $ 14 bn deal to pipe gas from South and Central Sumatra to Singapore. The agreement will be signed at the beginning of this year, Indonesia's Mines and Energy Minister Purnomo Yusgiantoro said.
The gas will be piped from Grissik, in South Sumatra, via a $ 1.1 bn 482 km pipeline, the paper said. Gas piped from the West Natuna Sea to Singapore's Jurong Island will contribute $ 5.7 bn to Indonesian government coffers over the next 22 years, Purnomo said. Gross revenues will reach $ 9.4 bn. Indonesia earlier signed an $ 8.5 bn deal to supply gas from the West Natuna fields to Malaysia's Duyong gas field facilities, operated by Petroliam Nasional.
Indonesia will receive an additional $ 8.6 bn in net revenues over the next 20 years from gas supplied to Singapore from South Sumatra and to Malaysia from West Natuna, Purnomo said. Gross revenues from the two pending deals could reach $ 22.5 bn, he said.

Indonesia will rely on gas supplies to the Asian gas grid as a way of attracting investment and strengthening ties with its Southeast Asian neighbours, Purnomo said. "If we cannot market (our gas) as LNG, we can sell raw gas to Singapore, Malaysia and Thailand," he said.
Purnomo spoke ahead of the inauguration ceremony for natural gas arriving in Jurong Island from the West Natuna Sea. The gas comes from fields operated by Indonesia's Pertamina and its partners, Conoco of the US, UK's Premier Oil and Gulf Indonesia Resources.