BP looking for other LNG markets aside from China<\/p>\n
JAKARTA (JP): BP Indonesia, a unit of the British-American oil
\nand gas company BP Plc., said aside from China, it was also
\nlooking for market opportunities in the United States, South
\nKorea and Japan for its Tangguh liquefied natural gas (LNG) plant
\nin Irian Jaya.<\/p>\n
\"Aside from China, we are looking for chances to market our
\nLNG products in California, South Korea and Japan.<\/p>\n
\"But, thus far only China has shown clear prospects,\" company
\nvice president for government and public affairs Satya W. Yudha
\nsaid.<\/p>\n
He noted that BP was optimistic to win the future tender for
\nthe contract to supply LNG to the world's largest nation given
\nthe numerous advantages possessed by Indonesia as well as BP over
\nother competitors.<\/p>\n
One of the advantages, he said, was the fact that BP had been
\nselected to build the LNG receiving terminal in the southern
\nChinese province of Guangdong.<\/p>\n
\"So far, China has given positive signals that it is satisfied
\nwith our work so far in building the terminal at the Guangdong
\nLNG plant,\" Satya said following a press conference on BP's world
\nenergy review.<\/p>\n
China is planning to hold a tender to buy three million tons
\nof LNG per year for the Guangdong province. It will be the
\ncountry's first LNG import.<\/p>\n
Among Indonesia's competitors are Qatar, Malaysia, Brunei,
\nAustralia, Iran and Russia.<\/p>\n
He said BP had recently sent officials to China to accompany
\nMinister of Energy and Mineral Resources Purnomo Yusgiantoro and
\ntop officials from state oil and gas company Pertamina to
\ndemonstrate BP and Indonesia's strong interest in the Chinese LNG
\nsupply contract.<\/p>\n
The LNG price BP had offered China was competitive compared
\nwith other contenders during the visit, he said, but he did not
\nspecify.<\/p>\n
Should China chose the Tangguh LNG plant in the bidding, BP
\nwas ready to sell to Chinese state oil and gas company China
\nNational Overseas Oil Corporation about 5 percent of its stake in
\nthe gas reserves that will supply the Tangguh LNG plant, Satya
\nsaid.<\/p>\n
BP owned 50 percent stakes in the Wiriagar, Berau and Muturi
\nproduction sharing contract (PSC) blocks, which will provide the
\nTangguh project with natural gas.<\/p>\n
BP and its partners have found proven gas reserves of 14.4 tcf
\nin the blocks.<\/p>\n
Satya said BP Indonesia had allocated between $3 billion and
\n$4 billion to complete the Tangguh project, adding that the firm
\nhad spent about $500 million on the Tangguh project up until
\n2000.<\/p>\n
Aside from the Tangguh LNG project, Satya said, BP was also
\nplanning to develop the Terang Sirasun gas fields on Madura
\nIsland in East Java, this year.<\/p>\n
The development of the gas fields was important to maintain
\nBP's gas supplies to buyers in East Java, including gas
\ndistribution company PT Perusahaan Gas Negara (PGN) and state-
\nowned chemical firm PT Petrokimia Gresik.<\/p>\n
Thus far, BP supplies the East Java buyers with natural gas
\nfrom its nearby Pagerungan field but gas reserves at the field
\nhave been dwindling.<\/p>\n
\"If we don't start the construction of the Terang Sirasun
\nproject this year, our customers will have a shortage in LNG
\nsupplies starting 2004,\" he told the Jakarta Post.<\/p>\n
He noted however that the government had yet to issue the
\npermit for the development of the Terang Sirasun gas project.<\/p>\n
Satya said that BP had allocated about US$300 million to
\ndevelop the Terang Sirasun field, which contained proven gas
\nreserves of about 1 trillion cubic feet (tcf). (05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bp-looking-for-other-lng-markets-aside-from-china-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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