What is this, and am I wasting my time?

A guy I've been close with for years said he's interested in me, but isn't ready to commit because we live hours away from each other. Sucks, but ok I'll live. However, we still talk daily, share intimate details about our lives, and definetely have a spark. So if he can't or won't take the next step, then why pursue me? It can't be sex since we've never had it (although we do... I'll say fantasize). And no, there's no one else on either side. Is he just sorting out his feelings? I'm frustrated.