Ship for Indonesian LNG

Ship for Indonesian LNG

TAIPEI (Reuter): Taiwan's state-run Chinese Petroleum Corp (CPC) will participate in a joint venture with an Indonesian and a Japanese firm to jointly invest more than US$300 million in building a ship to transport liquefied natural gas (LNG), a Taiwan newspaper reported.

The Commercial Times quoted unnamed CPC sources as saying the venture will be capitalized at US$35.6 million. CPC and the Indonesian partner will each take a 40 percent stake and the remainder will be taken by a Japanese firm.

Some 90 percent of the funds needed in the venture will be obtained through bank loans, the paper said.

In August, CPC said it was considering raising its annual import of LNG from Indonesia to a total of 3.4 million tons from 1.5 million tons.

In 1989, CPC signed a 20-year contract with Indonesia to import 1.5 million tons of LNG per year. This year, it started a 20-year contract with Malaysia to import an average of 2.1 million tons of LNG per year.

Indonesia and Malaysia are currently Taiwan's only LNG suppliers.