RI shows gas potential at world energy expo

JAKARTA (JP): The Indonesian International Oil, Gas and Energy Conference and Exhibition (IIOGE) opened here on Tuesday with Indonesia endeavoring to find export markets for the country's gas resources.

Delegates from India and China, both prospective markets for Indonesian gas, will be among those in attendance at the three- day conference and exhibition at the Jakarta Convention Hall.

"We are particularly excited to welcome our Indian counterparts to Jakarta again to discuss further the potentials for partnership, both in the supply of LNG (liquefied natural gas) to the subcontinent and in the domestic development of Indonesia's resources," IIOGE cochairman Kusumo A. Martoredjo said in a press statement.

Indonesia is steeping up its marketing efforts to find export markets for the Tangguh gas fields in Irian Jaya and the Badak gas fields in East Kalimantan.

India's delegation to the conference is Minister of Petroleum and Natural Gas H.E. Shri Ram Naik.

The Indian Oil Corporation Ltd. (IOC) visited Indonesia in July to discuss the possibility of buying LNG from state-owned oil and gas company Pertamina.

IOC has said India might import over 1.8 million tons of Indonesian LNG if Pertamina accepted India's terms and conditions. IOC's visit ended with both countries agreeing to work out a deal.

Kusumo also expressed hopes Indonesia and China could increase their bilateral cooperation in the gas sector.

To penetrate the Chinese market, then minister of mines and energy Susilo Bambang Yudhoyono met in August with Chinese officials in Beijing.

Pertamina is now participating in a tender to supply China with three million tons of LNG per year.

Following his opening speech, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the government was considering offering gas contractors incentives for the development of domestic gas resources.

He fell short of giving any details of the proposed incentives, saying only that domestic gas prices could drop by 50 percent.

Topics at the conference, which officially opens on Wednesday, will include the future of Indonesia's oil and gas sector, regional cooperation in the energy sector and profiles of oil and gas companies.

Rilwanu Lukman, the secretary-general of the Organization of Petroleum Exporting Countries (OPEC), and Beyond Petroleum (BP) chief executive John Browne also will attend the conference.(bkm)