Govt denies to have LNG talk with Taiwan VP

Government said on Monday it did not discuss any deals to supply liquefied natural gas to Taiwan during Vice President Annette Lu's controversial visit here last week.

"There was no communication with me. No contact or talks on this matter," Mines and Energy Minister Purnomo Yusgiantoro told reporters.

Taiwan's China Times Newspaper has said Taipei plans to buy three million tonnes of liquefied natural gas (LNG) in a 25-year deal worth T$400 billion ($11.7 billion) and that Indonesia, the world's biggest LNG exporter, was interested.

Jakarta, which has no diplomatic ties with Taipei, tried its best to distance itself from Lu's trip after China raised the matter. However, Indonesian sources said Lu had met the labor and environment ministers during her four-day stay.

Speaking back in Taiwan, Lu said her trip had been a setback for arch-rival Beijing and a diplomatic victory for Taipei, but China mocked the visit as a farce.

"It was a complete success," Lu told a news conference, adding the trip had been "highly difficult and secretive".

Beijing insists Taipei is a rebel province not entitled to diplomatic recognition by any country and complains bitterly over trips by Taiwan officials to countries with which it has ties.

China awarded a coveted multi-billion dollar LNG supply contract to Australia LNG Pty Ltd this month, surprising many experts who had tipped rival BP Plc and Indonesia to pick up the deal.

Indonesia, Asia's only OPEC member, already exports more than 23 million tonnes of LNG to Japan, South Korea and Taiwan, but the cash-strapped government is eager to attract more investment, particularly in the energy field.(*)