RI eying Chinese LNG market<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
Indonesia is seeking to supply the growing Chinese liquefied
\nnatural gas (LNG) market as part of its expansion strategy, a
\nsenior government official says.<\/p>\n
Director general of oil and gas Rachmat Sudibyo said Saturday
\nthat in addition to the 3 million ton per year demand from the
\nGuangdong province, two other Chinese provinces had also
\nexpressed interest in establishing an overseas LNG supply.<\/p>\n
\"This is a good opportunity for us as we plan to diversify our
\nLNG markets,\" he told The Jakarta Post.<\/p>\n
He said that one of the two provinces seeking LNG from outside
\nChina was Beijing. He did not remember the other one.<\/p>\n
He said that the LNG demand from the two provinces would at
\nleast 3 million tons per year.<\/p>\n
Japan is Indonesia's largest LNG market, followed by Taiwan
\nand South Korea. These countries have signed long-term supply
\ncontracts with Indonesia.<\/p>\n
Currently, Indonesia has two LNG plants, the Arun plant in
\nAceh and the Badak plant in East Kalimantan. The plants are
\njointly owned by the state-owned oil and gas firm Pertamina and
\nits foreign partners.<\/p>\n
Pertamina is also developing a third plant called the Tangguh
\nLNG plant in the Papua province.<\/p>\n
Pertamina and an Indonesian subsidiary of British American
\ngiant BP submitted last week their joint bid to supply LNG to the
\nGuangdong province.<\/p>\n
A deal with China would pave the way for full-scale
\nconstruction of the Tangguh LNG plant, a joint project involving
\nPertamina and BP Indonesia.<\/p>\n
The Guangdong province offers potential sales totaling 3
\nmillion tons of LNG annually, beginning in 2005.<\/p>\n
Pertamina is competing with suppliers from Australia,
\nMalaysia, Qatar, Iran, Yemen, and Russia.<\/p>\n
The tender process will be completed in about three months,
\nwith only one supplier to win the contract.<\/p>\n
Five top Indonesian economic ministers flew to China earlier
\nthis week as part of efforts to help Pertamina and BP win the LNG
\ncontract.<\/p>\n
China has been aggressively promoting the use of LNG in many
\nsectors of the economy as part of its plan to provide clean
\nenergy in the future.<\/p>\n
But it must import some of its gas demand through pipelines or
\nby ship due to a lack of domestic reserves.<\/p>\n
Rachmat said that the government would also try to seek other
\nLNG markets overseas.<\/p>\n
Recently, Pertamina signed a memorandum of understanding to
\nsupply 1.3 million tons of LNG per year to the Philippines from
\nthe Tangguh project.<\/p>\n
Rachmat said that another potential market for Indonesian LNG
\nwas the U.S.<\/p>\n
\"I'm optimistic we will be able to find new LNG markets as the
\nworld is turning to gas from oil,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-eying-chinese-lng-market-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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