China to send 47 reps to Indonesia-China Energy Forum: Report

China will send 47 delegates from government and industry to attend the first Indonesia-China Energy Forum, which is part of high-level strategic moves between the two countries to strengthen cooperation in the energy sector, AFX-ASIA reported on Wednesday.

Leading the delegation will be Zeng Peiyan, chairman of the State Development Planning Commission which determines China's industrial policy.

The forum, scheduled for Sept 25-27 in Bali, is expected to pave the way for new initiatives worth billions of dollars over the long-term starting with the signing of a much-anticipated deal for Indonesia's proposed Tangguh gas project to supply a terminal to be built in Fujian province.

That deal, initially for 2.5 million tonnes of liquefied natural gas (LNG) per year starting 2006/07, is estimated at some US$500 million per year.

Wei Liucheng, the president of China National Offshore Oil Corp Ltd (CNOOC) which last month named Tangguh as the preferred supplier for Fujian, is expected to attend the forum, according to the official list of China's delegates.

Wei will be accompanied by CNOOC vice president Jiang Longsheng and another three senior officials.

PetroChina Co Ltd is sending vice-president Lui Bao He and another five senior officials, while China Petrochemical Corp's (Sinopec) team will be led by vice president Chen Tonghai. The vice president of Sinopec International Petroleum Exploration & Production Corp, Qiu Xianghua, will also attend, along with two other Sinopec executives.

Indonesian Energy and Mineral Resources Minister Purnomo Yusgiantoro will lead the Indonesian delegation.

The forum program, includes the signing of a new MoU and/or letter of intent (LoI) on Sept 26, following a bilateral plenary meeting.

Talks on possible long-term commitments for China to buy a total of 9-15 million tonnes per annum of LNG from the $2.0 billion Tangguh project will be a major highlight.

Tangguh heads a list of 25 collaboration projects between the two countries as part of a broader strategic cooperation initiative, as China encourages a switch to gas away from dirtier, more inefficient coal.

Construction of Tangguh, Indonesia's third biggest LNG project after Arun in North Sumatra and Bontang in East Kalimantan, is scheduled to start next year. The project is operated by BP Plc in partnership with state-owned oil and gas company Pertamina and five other minority stakeholders. (*)