Chinese LNG bidding expected to start late this month: Source

The Chinese government would hold the tender for the contract to supply liquefied natural gas to the country from late this month to mid-August, an Indonesian source said Friday.

The source, who is one of the Indonesian delegates visiting the country, told Petromindo.Com via telephone from China that the timetable for the tender had been unveiled by the Chinese governmental officials during meetings with the Indonesian delegation.

The delegation, which is headed by Minister of Energy and Mineral Resources Purnomo Yusgiantoro, met with several top officials in China, including the country's vice prime minister, chairman of the country's Development Planning Board, and the governor of Guangdong during the visit, which started Wednesday.

Guangdong, located in the southern part of China, is the province which wants to import 3 million tons LNG per year -- China's first LNG imports.

The visit by the Indonesian delegation was aimed to show to the Chinese government Indonesia's strong interest in supplying LNG to China from its planned Tangguh LNG plant in Irian Jaya, Purnomo has said.

Accompanying Purnomo during the visit were state oil and gas company Pertamina's president Baihaki Hakim, expert staff to the minister for financial and commercial affairs Kardaya Warnika and BP Plc's Associate President in Indonesia Bill Schrader.

Anglo-American energy giant BP is the 50 percent owner of the gas reserves in the Bintuni, Berau and Wiriagara areas that will feed the Tangguh LNG plant.

Indonesia is competing with several countries, including Australia, Malaysia, Qatar, Brunei, Iran and Russia, for the LNG supply contract.

According to the source, aside from Indonesia, Australia, Malaysia and Qatar have submitted their bidding proposal to the Chinese government. (Ary Dharmawan)