Supply contracts needed for Tangguh<\/p>\n
The Tangguh liquefied natural gas (LNG) project being
\ndeveloped by a consortium led by British firm BP PLC in the
\nBird's Head area of Papua is expected to become the country's
\nthird LNG plant, after ones in Arun and Bontang.<\/p>\n
Aside from boosting Indonesia's LNG output, the project also
\nwill generate revenue for Papua, one of the poorest region of the
\ncountry.<\/p>\n
The plant is designed to have an installed capacity of seven
\nmillion tons of LNG per year, but thus far it has only secured a
\ncontract to supply 2.6 million tons a year to China's Fujian
\nprovince starting from 2007.<\/p>\n
Efforts to secure additional contracts have thus far failed,
\nand on Friday it lost the bid to supply LNG to the Tatan power
\nplant owned by Taiwan's state-owned Taiwan Power Co., or
\nTaipower.<\/p>\n
The government is still working to help BP secure additional
\ncontracts, including from Japan, South Korea, the Philippines and
\nMexico, so development of the plant can begin next year as
\nscheduled, Minister of Energy and Mineral Resources Purnomo
\nYusgiantoro said on Wednesday.<\/p>\n
Purnomo said BP had told the government it was ready to kick
\noff development of the plant.<\/p>\n
The International Advisory Panel on the Tangguh Project --
\ncomprising former U.S. senator George Mitchel, Lord Hannay of
\nBritain, Rev. Herman Saud, the head of the Evalengical Christian
\nChurch in Papua, and former Indonesian ambassador to Australia
\nSabam Siagian -- recently made an annual visit to the site to
\nstudy the social, economic and ecological impacts of the project.<\/p>\n
They found that BP had made preparations to begin work on the
\nproject. -- JP<\/p>",
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"sponsor": "Okusi Associates",
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