Govt to form task force team on LNG supply to China?s Fujian province

Friday, August 9 2002 - 05:15 AM WIB

The government will soon form a task force team to prepare terms and condition of a contract to supply some 2.5 million tons per year of liquefied natural gas (LNG) to China?s Fujian province, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Friday.

Team members will comprise top officials of the directorate general of oil and gas of the Ministry of Energy and Mineral Resources, Implementing Body (Balak) which holds the highest authority over the country?s oil and gas upstream sector, state oil and gas firm Pertamina, and BP Indonesia.

?The team will be tasked with preparing terms and condition of the gas contract,? Purnomo said in a news conference.

China recently awarded Indonesia, without prior tender, the 20-year contract to supply 2.5 million tons of LNG per annum to Fujian province from 2006 or early 2007. Chinese Prime Minister Zhu Rongzie recently advised President Megawati Sukarnoputri about the supply contract.

Indonesia and Qatar have failed to win the tender to supply 3 million tons of LNG to Guangdong province in southern China, planned to start from 2005. China has awarded Australia the LNG supply contract.

Indonesia?s LNG for Guangdong had been planned to come from BP Indonesia?s Tangguh field in Papua.

Purnomo said on Friday Indonesia?s failure to win the contract to supply LNG to Guangdong had nothing to do with the introduction of the new oil and gas law which became effective last year. (godang)

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