BP to submit second round China LNG bid

Anglo-American energy giant BP Plc. said on Wednesday that it would submit second round bid to supply 3.5 million metric tons of liquefied natural gas (LNG) per year from Tangguh in Indonesia?s easternmost province of Papua to China?s receiving terminal in Guangdong mid-April this year after China shortlisted the potential supplier from seven countries to three last month.

BP said that in March 24, a bid committee from China will come to Indonesia to conduct due diligence. According Satya W. Yudha, vice president public and government affairs of BP Indonesia, China would also conduct due diligence on Australia and Qatar.

?We believe that China is conducting truly international and transparent tender process, and therefore we would gladly follow every step the bidding committee set,? he said.

Satya said the second round bid submission bidders would be expected to renew terms and condition.

Indonesia and BP is trying hard to win the China LNG deal by sending high ranking government official and offering cooperation since the winning of the contract would ensure development of Tangguh LNG plant to be carried out.

President Megawati Sukarnoputri is also expected to pay a visit to China in March 24. According to an industry source, one of the president?s agenda would surely be lobbying China?s government to push Tangguh as winner.

Indonesia is now facing stiff competition from Australia LNG which operates the Northwest Shelf LNG facility which had earlier said it would build the fifth LNG train if selected as winner.

The Guangdong LNG supply contract offers potential sales totaling 3 million tons of LNG annually, beginning in 2005.

BP Plc., the operator of Tangguh also owns 30 percent of the LNG receiving terminal in at Shenzhen in Guangdong, which is scheduled to be completed by the end of 2005. (alex/godang)