Gus Dur optimistic China will buy LNG from RI

President Abdurrahman Wahid reiterated on Monday his optimism that China would buy liquefied natural gas (LNG) from the planned Tangguh LNG plant in Irian Jaya.

Speaking at the opening of the Indonesian Investment Summit on Mining and Energy on Monday, the President said China's interest in Indonesia's LNG was very high that he was quite confident China would not turn to supplies from other countries, including Australia, Qatar and Malaysia, which have also shown in interest in supplying LNG to China.

Wahid, who is popularly called Gus Dur, said he met on Monday a Chinese delegation on the possible supply contract.

Aside from meeting the Chinese delegation, Gus Dur said he also met with a delegation from India's state-owned oil and gas company interested in taking LNG from the Bontang LNG center in East Kalimantan.

He said an LNG contract with China, if signed, would value US$10 billion.

Gus Dur's statement came on the heels of the visit by an Indonesian delegation led by Minister of Mines and Energy Susilo Bambang Yudhoyono to market the Tangguh LNG project, which is owned by Indonesian state oil and gas company Pertamina and Amerian oil and gas company BP Amoco and partners.

Director general of oil and gas Rachmat Sudibyo, who was among the delegation, recalled that Chinese authorities had told the delegation the country would put its annual import demand of 3 million tons into tender. He was optimistic Indonesia will win the tender, citing Indonesia's track record as the world's largest LNG exporter.

He said the tender is expected to take place sometime in August this year.

However, a Chinese executive involved in the LNG project was quoted by Dow Jones on Monday that China's won't be signing any LNG purchase agreement until next year at the earliest.

He said nine countries, including Malaysian, Indonesia, Qatar, Oman and Australia, had demonstrated interest in supplying LNG to China but China is keeping equal distance to all the potential suppliers. (*)