Gov't has yet decided which LNG center to partake in Taiwan LNG tender

Upstream oil and gas authority BP Migas said on Monday that thus far, it had not decided which LNG producer would be chosen to participate in Taiwan LNG tender.

?It could either be from Bontang, Tangguh or Donggi. One thing for certain, Arun will not participate in the tender because it would not have excess capacity to serve the demand,? said BP Migas chief Rachmat Sudibjo.

Rachmat also said his office had not make any decision whether marketing leader for Taiwan LNG tender will be given to state oil and gas company Pertamina.

Taiwan?s Taipower had re-opened tender for 1.5 million ton per annum of LNG for its power plant starting 2007 for 25 years. The LNG will be used to fire 4,000 MW Tatan gas-powered power plants.

According to Pertamina president in an interview earlier, Baihaki Hakim, the tender participants are scheduled to submit their bids early next year.

Baihaki said Pertamina is considering to the possibility to offer LNG from its yet-to-be-developed giant gas field in Donggi, Central Sulawesi. ?There has been preliminary talk about that. If Taiwan wants the LNG in 2007, I?m sure we could cater for its demand,? said Baihaki.

Earlier, Rachmat signaled that Indonesian LNG producers might compete openly in order to win an overseas LNG supply contract, a thing Indonesia had never did in the past.

Indonesia is thus far the world?s largest LNG exporter with LNG plants in Arun, Aceh and in Bontang, East Kalimantan. Another LNG plant is scheduled to come onstream in BP-operated Tangguh, Papua, by 2007. Pertamina is also trying hard to get customers to justify development of Indonesia?s fourth LNG center in Donggi. (godang)