Govt upbeat about China LNG prospects<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government is upbeat to it will seal a contract worth
\nbillions of dollars to supply five million tons of liquefied
\nnatural gas annually to China's Jiangshu province starting in
\n2007.<\/p>\n
"We hope the sale and purchase agreement can be signed later
\nthis year," Minister of Energy and Mineral Resources Poernomo
\nYusgiantoro told reporters on Monday.<\/p>\n
Poernomo said Indonesia might take the LNG supply from the
\nBontang LNG plant in East Kalimantan.<\/p>\n
Rachmat Sudibyo, the head of the upstream oil and gas
\nauthority, BP Migas, confirmed that negotiations were ongoing
\nbetween the agency and the potential buyer, Pacific Oil and Gas
\nLtd.<\/p>\n
One option being discussed is that the buyer could build a new
\nLNG train in Bontang.<\/p>\n
If Indonesia secures the deal, it will the country's second
\ncontract to supply LNG to China. Last year, Indonesia secured a
\ncontract to sell 2.6 million tons of LNG per year to China's
\nFujian province from 2007.<\/p>\n
The gas is to be taken from the country's third LNG plant in
\nthe Bird's Head area of Papua province. The plant is being
\ndeveloped by a consortium led by BP Plc. Construction of Tangguh
\nis expected to start next year.<\/p>\n
Indonesia is struggling to maintain its position as one of the
\nworld's largest LNG producers amid rising competition from other
\nnew LNG producers, including Malaysia, Australia and Qatar.<\/p>\n
The government, through BP Migas, has been intensifying its
\neffort to seek new markets as far afield as the U.S.<\/p>\n
In July, BP Migas signed initial agreements with U.S. buyers
\nsuch as Sempra Energy and Marathon Oil Corp. to supply around 6
\nmillion tons of LNG per year to the U.S.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-upbeat-about-china-lng-prospects-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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