Singapore and Indonesia to sign gas supply deal
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.
