BP says Tangguh construction to commerce early next year

Anglo-American energy giant BP plc said it would go ahead with the planned construction of Tangguh liquefied natural gas (LNG) complex in the easternmost province of Papua, despite the current lack of firm buyers for the LNG.

?Tangguh EPC would commence January 2004,? said Satya W. Yudha, BP Indonesia vice president for government and external relations Tuesday.

BP has appointed a consortium of KBR and Japan Gas Corporation to construct the US$1.4 billion LNG complex, with completion expected around 2007, when it would commence supply of 2.6 million tons per year of LNG to the Chinese province of Fujian. Tangguh will have two LNG trains with a combined capacity of around 7 million tons per year.

Tangguh has been struggling to find more buyers to fill its spare capacity and to justify for construction commencement.

BP had been named one of the bidders for South Korea LNG tender along with Malaysia Tiga LNG with the winner announcement expected next month. BP has also submitted bid to supply LNG to Taiwan and has also lobbied Japanese buyers, which seek to buy Indonesian LNG in one package. (alex)