BP to continue Tangguh project even if it fails to win China market

BP Indonesia said it will try to find other markets for its liquefied natural gas (LNG) product from the Tangguh field in the Papua province and will continue to operate the plant even if it fails in the bidding to supply LNG to China.

?Surely we will find other markets although it will not be easy work. The problem is that investment for just two trains had reached US$2 billion. Certainly that amount of investment has to be returned by finding new markets,? BP Indonesia public affairs vice president Satya W. Yudha said.

Earlier, BP Indonesia said it would in April submit second round bid to supply 3.5 million metric tons of LNG per year from Tangguh to China?s receiving terminal in Guangdong after China shortlisted the potential suppliers from seven countries to three -- Indonesia, Australia and Qatar.

It said a bid committee from China will come to Indonesia on March 24 to conduct due diligence. China would also conduct due diligence on the other two countries, it said.

Meanwhile, Satya said BP Indonesia had planned to allocate US$600,000 for environmental impact assessment at the Tangguh LNG project, which is developed together with state oil and gas company Pertamina.

BP Indonesia will on March 18 explain about its environmental studies on the Tangguh facility to the Environmental Impact Assessment Commission of the State Ministry of Environment, Satya said. (Leo)