Gus Dur says Tangguh LNG must benefit Papuans

President Abdurrahman insisted that the planned Tangguh LNG plant in the Berau Bay of Irian Jaya should bring benefit to the Papuan people.

The President, who is familiarly referred to as Gus Dur, also hoped that the mega-project would help accelerate the economic recovery process of the country.

"The President ordered Minister of Mines and Energy to follow up and speed up the development process of the Tangguh LNG plant in Papua as to boost the government's income, help accelerate economic recovery process and improve the welfare of the people in Papua," presidential expert staff Rizal Ramli said in a statement on Tuesday, referring to the meeting of the cabinet's economic team on Monday.

During the meeting, Rizal said, Gus Dur emphasized that the Tangguh mega-project should provide a maximum economic rent the Indonesian people and should not harm the environment.

Gus Dur said the gas fields around the planned Tangguh LNG plant has a proven reserve of 14.4 trillion cubic feet (tcf) or a proven and probable reserve of 23.7 tcf, of which the plant could produce between 3 to 18 million tons of LNG per year for he period of 20 years.

The project was expected to generate a total potential revenue of US60 billion.

Rizal also said Gus Dur appreciated the recent visit to China by an Indonesian delegation led by Minister of Mines and Energy Susilo Bambang Yudhoyono to market the Tangguh LNG project.

The Chinese government reportedly told the Indonesia delegation that it would put its LNG demand of three million tons per year into tender n August this year. The LNG will be supplied to Guang Dong province.

Gus Dur ordered the minister to take all necessary efforts to follow up the negotiation with the Chinese government to win the LNG tender.

"The President underlined that it is very important to win the Chinese LNG tender," Rizal said. (*)