Expert opposes BP?s regasifaction project plan

A noted oil and gas expert has expressed disagreement on BP Indonesia?s plan of building a regasification facility offshore West Java, Kompas daily reported on Tuesday.

Kurtubi was quoted as saying on Monday that natural gas for West Java should come from ExxonMobil?s gas field in Cepu, Central Java, and from other fields on the island which are operated by other production sharing contractors.

He argued that transmitting natural gas from Cepu would be much less costly than transporting natural liquefied gas (LNG) from BP?s Tangguh field in Papua province to the regasification terminal.

The terminal is planned to be located in Muara Tawar, West Java.

?The government should intervene in plans of production sharing contractors (KPS) because it is also entitled to the sale of natural gas they produce,? Kurtubi said.

He said BP would sell natural gas at high price prices in order to compensate the big amounts of funds used for building the regasification terminal.

Earlier reported that BP Indonesia, the Indonesian unit of world energy giant BP Plc, had planned to invest US$380 million to build a regasification project offshore West Java. If the plan is materialized, it will be the first project ever developed in Indonesia.

Feasibility studies on the project had been conducted since 1999.

West Java will face gas shortage of an estimated 500 million cubic feet per day (MMCFD) in 2005. (*)