China?s LNG supply from Tangguh may be delayed

China National Offshore Oil Corp.(CNOOC) may receive supplies of liquefied natural gas (LNG) from the BP Plc-led Tangguh project in Indonesia in 2009, a year later than originally planned, The Jakarta Post reported Friday.

The Post quoting Bloomberg as saying that delivery will ?hopefully? begin in 2008 and may start later, Eddy Purwanto, a deputy chairman at Indonesian energy regulator BP Migas said at an LNG summit in Shanghai Thursday. He didn?t elaborate on the cause of the delay.

China National Offshore and Indonesia Wednesday completed an agreement to secure LNG for a receiving terminal in the southeastern province of Fujian, Purwanto said.

The accord, first agreed in July, was based on a ceiling oil price of $38 a barrel, compared with $25 in a 2002 version of the contract, he said, declining to give further details on pricing.

An agreement between China and Indonesia on LNG supply has ?taken effect,? Liu Junshan, Beijing-based spokesman for China National Offshore, the nation?s third-biggest oil producer, said Thursday. Details of the agreement will be announced ?soon,? Liu said, declining to give the price for the fuel or say when deliveries will start.

BP owns 37.16 percent of Tangguh, making it the biggest investor. CNOOC, China?s largest offshore oil producer is the second-biggest, with 16.96 percent.

Other investors include Mitsubishi Ltd. and Inpex Corp. They hold a combined 16.3 percent in Tangguh. A Nippon Oil Corp. led company has a 12.23 percent stake and LNG Japan, owned by Sumitomo Corp. and Sojitz Holdings Corp. holds 7.2 percent. Japan Oil, Gas & Metals National Corp., Kanematsu Corp. and Mitsui & Co.?s Overseas Petroleum Corp. unit hold a combined 10 percent. (*)