China to increase LNG import from Indonesia

China has expressed its interest to increase its liquefied natural gas (LNG) imports from Indonesia to meet its growing energy demand, Kardaya Warnika, the head of BP Migas, said as reported by Kompas daily on Tuesday.

"We have not yet arranged a formal meeting to discuss the request, but the offer is quite positive for the Indonesian LNG sales," Kardaya was quoted by the daily as saying.

According to him, Chinese oil and gas company Chinese National Petroleum Corporation (CNPC) is currently developing three LNG receiving terminals to meet the country's growing LNG demand.

Indonesia has signed a long-term contract to sell 2.6 million tons of LNG a year to the Chinese province of Fujian. The LNG will be supplied by the Papua-based Tangguh LNG plant which is expected to begin production in 2008.

Kardaya said that China had expressed its intention to buy another 7 million tons of LNG a year from Indonesia.

At present, the Tangguh LNG plant, which is currently under development, has secured a contract to sell LNG totaling about 7 million tons a year. In addition to China, Sempra Energy of the United States has agreed to buy 3.7 million tons a year, and Korean companies Korea Power and Posco have agreed to buy about 1.15 million tons a year. (*)