Govt supports Pertamina?s bid to supply LNG to S. Korea?s POSCO, SK Corp

The government fully supports Pertamina?s efforts to bid to supply 1.1 million tons per year of liquefied natural gas (LNG) to South Korea?s steel maker POSCO and oil refiner SK Corp, oil and gas director general Iin Arifin Takhyan told Petromindo.Com Monday.

?The government fully supports Pertamina?s efforts to open new LNG markets in South Korea,? Iin Arifin said.

The official said however he was not clear whether the South Korean companies had sent formal invitation to Pertamina to bid for LNG supply to that country.

Last Wednesday, Pertamina president director Baihaki Hakim said his company had not yet received any formal invitation to take part in the bid. He said however that he had been scheduled to meet with POSCO and SK leaders this week.

Reports said earlier that POSCO and SK had sent an invitation to several LNG producers, including Australia?s North West Shelf, to bid for a 20-year contract to supply 1.1 million tons per year of LNG, and that the contract would take effect from 2005.

Pertamina?s downstream director said the company and its partners would commence the construction of Bontang?s ninth LNG train in East Kalimantan if Pertamina won the contract to supply LNG to the South Korean buyers.

South Korea is Indonesia?s major LNG buyer, and is the world?s second largest LNG importer after Japan. (godang)